Carnavale Resources Delivers Positive Scoping Study For Kookynie Gold Project

Carnavale Resources Ltd (ASX:CAV) has revealed a robust maiden resource and a positive scoping study for its Kookynie Gold Project in Western Australia.

The study assessed several open pit and underground mining scenarios to develop the Swiftsure deposit within Kookynie.

The most profitable development scenario comprised a compact open pit and underground development.

Watch: Carnavale Resources CEO Humphrey Hale Tells JustStocks Kookynie Scoping Study Demonstrates Valuable Niche Project

Carnavale’s maiden resource for Swiftsure is 457,000 tonnes at 5.8 g/t for 85,000 ounces of gold.

This includes the bonanza “ounce dirt” gold zone containing ~53,000 ounces at 31.2g/t gold.

Bonanza grade plunging shoots

Carnavale CEO Humphrey Hale said: “Swiftsure represents a new discovery in the historic Kookynie mining camp, close to Leonora, and has similar high-grade characteristics of the historic mines 2km to the east such as Cosmopolitan, Diamantia and Altona.

 “Swiftsure is characterized by bonanza grade plunging shoots within a vein structure that has extensive strike extents.

 “The high-grade shoots within Swiftsure contain the fabled “ounce dirt” or 53koz at 31.2g/t which ensures robust financials for the project.”

Scoping study results

The mine plan targets the production of ~62,000 ounces of gold at an average grade of 4.6 g/t.

This initial production will be spread over 32 months, drawing from both open pit and underground resources.

The project boasts a robust pre-tax net present value of A$91 million and an internal rate of return (IRR) of 192% at a gold price of A$3,500 per ounce.

Importantly, all pre-production capital is expected to be recovered within just 14 months.

“Various pathways to value”

 Hale added: “Carnavale appointed independent consultants Cube Consulting to calculate the maiden MRE and run several mining scenarios to establish the best way to develop the Swiftsure project.

 “The study demonstrates robust economics and provides various pathways to value for Carnavale shareholders.

 “This is just the starting position for the Kookynie Gold Project, as the high-grade shoots that contain “ounce dirt” remain open at depth and there are multiple additional targets along strike that have the potential to host additional high-grade shoots in fresh rock, at depth.”

 

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