Carnavale Resources Shares Rise After Discovering Shallow High-Grade Gold At Kookynie

Carnavale Resources Ltd (ASX: CAV) shares were trading 20% higher intra-day at $0.006 following the discovery of new high-grade gold mineralisation at its Kookynie Gold Project in Western Australia.

The project is located 60km south of Leonora.

The company’s reverse circulation (RC) drilling program in February 2024, comprising 14 holes for 1,694 metres, intersected shallow high-grade gold at Tiptoe, 200 metres northeast of the McTavish East prospect.

High-grade results from Tiptoe include 5 metres at 4.91g/t gold from 87 metres including a 1-metre section peaking at 20.3g/t gold.

Mineralisation encountered at Tiptoe has the same quartz, disseminated sulphides, and free gold mineral assemblage as the high-grade zones within the Swiftsure lode at the McTavish East Prospect.

This could represent a repeat of this style of mineralisation and provides scope to increase resources with additional drilling.

Carnavale’s drilling also extended the high-grade gold mineralisation at the Champion South Prospect, with results including 3 metres at 6.83g/t gold from 107 metres.

Plan of McTavish East Prospect with recent RC drilling at Tiptoe and Champion South. Gold contours over magnetic image.

The Maiden Mineral Resource Estimate (MRE) and mining study evaluation are underway for McTavish East and are due to be completed during Q2 2024.

Meanwhile, exploration continues at Kookynie with 4,249 metres of exploration aircore drilling recently completed, with assays due in Q2 2024.

CEO Humphrey Hale said:

“We are excited about our ongoing exploration at Kookynie. Work is underway to establish a maiden resource and mining option study at the McTavish East Prospect.”

Hale anticipates the development will comprise of both open-cut and underground mining and utilise an existing third-party processing plant.

Initial test work

The initial metallurgical test work on oxide and fresh rock samples had recoveries ranging between 97% and 99%.

The test work is designed to evaluate gold recoveries and reagent consumption from the McTavish East mineralisation that would be expected from a commercial CIL/CIP gold processing plant.

The combination of open pit and underground development together with multiple third-party processing opportunities provides significant scope in the economic evaluation of the project.

Carnavale’s goal is to discover high-grade, truckable resources, of a similar size to the historic Cosmopolitan Mine that can be processed at an existing third-party nearby processing plant.

The McTavish East Prospect is located 15km from $2.0B capped Genesis Minerals Ltd’s (ASX: GMD) Ulysses Project and 63km from their Gwalia processing plant at Leonora.

Articles of Interest