Carnavale Resources Ltd (CAV) has announced a significant update to the Mineral Resource Estimate (MRE) for its Kookynie Gold Project, located 60km south of Leonora, Western Australia. Carnavale Resources is focused on identifying and developing economic mineral deposits. The updated MRE incorporates all drilling data to date, confirming a resource of 842kt at 4.3g/t for 117koz Au, including a bonanza gold zone containing 60kt at 28.3g/t Au for 55k oz.
The updated MRE represents a 38% increase on the maiden MRE of 85koz, with a substantial 66% of the resource now classified in the Indicated category, reflecting increased confidence in the deposit. Indicated resources have increased by 46%, and the new Tiptoe Lode is included in the resource adding shallow open pittable resources. The company is in detailed discussions with mining contractors to unlock the value of the Project via a potential joint venture.
The resource remains open at depth and along strike, presenting further opportunities to increase resources at Valiant and other targets. CEO Humphrey Hale commented that the Swiftsure and Tiptoe lodes represent a valuable niche project in the Eastern Goldfields, close to operating processing plants. The company has commenced an updated Scoping Study to include the revised resources, the increase in confidence, and improved economics, considering the current gold price trading in excess of Au $5,100 per ounce compared to the earlier Scoping study which used a gold price of Au $3,500.
Cube Consulting has been commissioned to update the Scoping Study, incorporating the increased indicated resources and improved gold price. The revised Scoping Study will include a 38% increase in total resources, which have benefited from a 46% increase in the indicated category. Further studies will be undertaken including detailed hydrology, hydrogeology, flora/fauna, geotechnical and ESG assessments as part of a Feasibility Study. A Mining license to develop the project has been lodged.Priority is to complete study work to a Feasibility Study level.
