Carnavale Resources reports strong diamond and RC drilling results at its Kookynie Gold Project, extending mineralisation depth and strike at Swiftsure and Tiptoe lodes. An updated resource estimate and scoping study are due in September, underpinning advancing development plans.
- 20-hole diamond and RC drilling program confirms high-grade gold at Swiftsure, Swiftsure South, and Tiptoe
- Mineralisation extended to over 400m depth and 1,500m strike length at Kookynie
- Significant intercepts include 2.5m at 21.5g/t and 6m at 8.4g/t gold
- Updated Mineral Resource Estimate and Scoping Study underway, targeting September quarter completion
- Mining license application submitted; project shows robust economics with A$91m pre-tax NPV and 192% IRR
Drilling Success at Kookynie
Carnavale Resources Ltd has announced encouraging results from its recent diamond and reverse circulation (RC) drilling campaign at the Kookynie Gold Project in Western Australia. The program, comprising 20 holes including 4 diamond tails, targeted the high-grade Swiftsure, Swiftsure South, and Tiptoe lodes, located approximately 180km south of Leonora and 60km north of Kalgoorlie.
The drilling has successfully extended mineralisation depth at Swiftsure to over 400 metres below surface and confirmed continuity along a strike length of approximately 1,500 metres. Notable intercepts include 2.5 metres grading 21.5 grams per tonne (g/t) gold from 336.8 metres and 6 metres at 8.4 g/t from 125 metres, highlighting the project's high-grade potential.
Resource Confidence and Expansion
Infill drilling at Swiftsure South has increased resource confidence, with significant intercepts such as 3 metres at 6.8 g/t from 267 metres. Meanwhile, the Tiptoe lode, newly defined over 200 metres of strike and 160 metres depth, remains open down dip, suggesting further upside potential. These results build on previous discoveries and reinforce the project's status as a significant high-grade gold system.
Carnavale's CEO Humphrey Hale emphasised the importance of these results in advancing the project towards development. "The Kookynie Gold Project has demonstrated strong exploration growth and resource confidence, which will add shareholder value as we update the Mineral Resource Estimate and Scoping Study," he said.
Economic Outlook and Development Plans
The company is progressing an updated Mineral Resource Estimate (MRE) and Scoping Study, expected to be completed in the September quarter of 2025. The initial Scoping Study published in June 2024 outlined robust economics, including a pre-tax Net Present Value (NPV) of approximately A$91 million and an Internal Rate of Return (IRR) of 192% at a gold price of A$3,500 per ounce. The project benefits from low pre-production capital expenditure of around A$3 million and a rapid capital payback within 14 months of operations.
Carnavale has also submitted a mining license application and is in early discussions with potential partners to advance the project towards production. The company sees strong potential to optimise the mine plan with the addition of new ounces and improved pricing metrics, aiming to capitalise on the favourable gold price environment.
Looking Ahead
With mineralisation remaining open in multiple directions and ongoing drilling success, Carnavale is well positioned to enhance the Kookynie Gold Project’s resource base and economic profile. The upcoming resource update and scoping study will be critical milestones, setting the stage for potential development and production decisions in the near term.
Bottom Line?
As Carnavale prepares its September resource update, investors will watch closely for how these drilling results translate into mineable ounces and project economics.
Questions in the middle?
- How much additional gold ounces will the updated Mineral Resource Estimate add?
- What timeline is Carnavale targeting for mining license approval and production commencement?
- Will potential partnerships accelerate project development or alter capital requirements?