Kookynie Gold Project Expands: Tiptoe Discovery and Swiftsure Depth Extensions Deliver High-Grade Hits
Carnavale Resources has expanded its Kookynie Gold Project with the discovery of the Tiptoe lode and significant depth extensions at Swiftsure, enhancing resource potential amid rising gold prices.
- Discovery of new high-grade Tiptoe gold lode over 200m strike and 120m depth
- Swiftsure lode extended 150m deeper and along strike to the southwest
- Three high-grade gold lodes now defined over 1,500m strike length
- All lodes remain open for further expansion
- Positive implications for mine planning and project economics in a high gold price environment
Expanding the High-Grade Corridor
Carnavale Resources Ltd (ASX: CAV) has delivered a compelling update from its Kookynie Gold Project in Western Australia, revealing a newly discovered high-grade gold lode named Tiptoe and significant down-dip extensions at the existing Swiftsure deposit. These results come from a recent 21-hole drilling campaign comprising reverse circulation and diamond drilling, targeting extensions of known mineralisation and new structural targets.
The Tiptoe lode, located immediately northeast along strike from Swiftsure, has been defined over 200 metres of strike and 120 metres of depth, with high-grade intercepts such as 10 metres at 5.5 g/t gold including 7 metres at 7.6 g/t. This discovery adds a third major lode to the project’s portfolio, alongside Swiftsure and Swiftsure South, collectively extending the mineralised strike length to approximately 1,500 metres.
Depth Extensions at Swiftsure Bolster Resource Potential
Swiftsure itself has been extended down dip by 150 metres to around 350 metres vertical depth, with impressive intercepts including 3 metres at 37.1 g/t gold and 2 metres at 19.3 g/t gold. These deeper zones lie beneath the conceptual underground development outlined in Carnavale’s June 2024 Scoping Study, indicating substantial upside to the existing resource base.
Additionally, the Swiftsure South extension, previously not included in resource estimates, has yielded encouraging results such as 7 metres at 3.1 g/t gold and 2 metres at 12.4 g/t gold, suggesting potential for further resource growth along strike.
Strategic Implications and Next Steps
CEO Humphrey Hale emphasised the significance of these findings, noting that the high-grade mineralisation remains open both along strike and at depth. The company plans to intensify drilling on a tighter 20x20 metre grid to delineate additional high-grade shoots and increase resource ounces. This strategy aims to enhance the economics of the Kookynie Gold Project, particularly given the current gold price exceeding AU$4,300 per ounce, well above the AU$3,500 per ounce used in the prior Scoping Study.
The geological setting, featuring quartz veins with pyrrhotite, pyrite, and scheelite proximal to a granite intrusion, hints at a magmatic origin for the mineralising fluids. Carnavale intends to conduct a gravity survey to better understand the granite’s location at depth, which could unlock further exploration targets.
Robust Economics Underpinning Development
The June 2024 Scoping Study for Swiftsure outlined a pre-tax NPV8 of approximately A$91 million and an IRR of 192% at AU$3,500/oz gold, with a modest pre-production capital requirement of around A$3 million and payback within 14 months. The new drilling results, by expanding the resource base and confirming high-grade continuity at depth, provide a strong foundation for revisiting and potentially improving the mine plan and financial projections.
With all lodes remaining open and additional targets untested, Carnavale’s exploration success at Kookynie positions the company well to capitalize on the current gold market dynamics and advance toward development approvals.
Bottom Line?
Carnavale’s expanding high-grade footprint at Kookynie sets the stage for a resource upgrade and enhanced project economics amid a buoyant gold price environment.
Questions in the middle?
- How will the new Tiptoe lode be incorporated into updated resource estimates and mine plans?
- What are the timelines and scope for the planned gravity survey and subsequent drilling campaigns?
- How might rising gold prices influence Carnavale’s development strategy and funding requirements?