Carnavale (ASX:CAV) scopes out maiden mining of Kookynie gold

Carnavale (ASX:CAV) scopes out maiden mining of Kookynie gold

June 13, 2024 Off By Jack Baker

Carnavale Resources has both its maiden estimate and scoping study in place at Kookynie, showing off a shallow, high-grade resource and a profitable way to mine it southbound of Leonora in Western Australia.

An initial 457 kilotonnes at 5.6 grams per tonne gold, 85 thousand contained ounce resource is 61 per cent indicated and comes from a single Swiftsure deposit which remains open at depth and along strike.

And the study to mine it over the first 32 months showed an asset with a pre-tax net present value of $91 million, payback in 14 months, and a 198 per cent internal rate of return from an open pit and underground development.

Carnavale Chief Executive Humphrey Hale said the company was delighted to announce results highlighting a niche, but very valuable project.

“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,” he said.

Hale noted the Swiftsure deposit was characterised by bonanza grade plunging shoots within a vein structure which features 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,” he said.

He added the study demonstrated robust economics and various pathways to value for shareholders, and that the company was excited about the project’s remaining upside.

“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,” Hale said.

Fresh discoveries at the Tiptoe and Valiant prospects look the likely targets for new drilling as Carnavale and its investors weigh up the ounces toward a mining decision.

The study showed a profit to be had as the operation stands, but Carnavale for now looks more likely to drill towards more ounces in a premium Leonora gold district which appears to remain split between two major players.

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