Kookynie Project’s Resource Surge Raises Stakes Ahead of Feasibility Study

Significant Resource Growth at Kookynie

Carnavale Resources has delivered a compelling update to its Mineral Resource Estimate (MRE) for the Kookynie Gold Project in Western Australia. The total resource has expanded by 38% to 842,000 tonnes grading 4.3 grams per tonne gold, equating to 117,000 ounces. This marks a notable advancement from the maiden MRE published just over a year ago, reflecting the success of ongoing drilling campaigns and resource modelling.

The increase is underpinned by a 46% uplift in the Indicated category, which now comprises 66% of the total resource. This shift enhances the confidence level in the project’s mineralisation and supports more robust economic assessments. The addition of the new Tiptoe lode, a shallow, open pittable zone, contributes approximately 12,000 ounces of high-grade gold at 3.6 g/t, complementing the existing Swiftsure lodes and broadening the project's resource base.

Strategic Location and Processing Advantages

Located about 60 kilometres south of Leonora in the Eastern Goldfields, the Kookynie Project benefits from proximity to several operating gold processing plants within trucking distance. This logistical advantage positions Carnavale well to unlock value through potential joint ventures or mining operations. The project’s high-grade shoots, including a bonanza zone within the Swiftsure lodes grading 28.3 g/t gold over 60,000 tonnes, promise robust financial returns.

Updated Scoping Study and Economic Outlook

In response to the updated resource, Carnavale has commenced an updated Scoping Study to incorporate the revised MRE and improved resource confidence. The study uses a conservative gold price of AUD 3,500 per ounce, despite the current market price exceeding AUD 5,100, suggesting potential upside in project economics. Early indications point to enhanced economic viability, supported by the high-grade, shallow nature of the mineralisation which is amenable to open pit mining with underground access at depth.

The Scoping Study update is expected to be completed shortly and will provide further clarity on the project's development pathway, including mining methods, processing strategies, and capital requirements. Carnavale’s CEO, Humphrey Hale, highlighted the strong exploration upside and the potential for further resource growth along strike and at depth, reinforcing the project's long-term value proposition.

Exploration Upside and Future Development

The resource remains open both at depth and along strike, with additional targets such as Champion, McTavish North, and Valiant identified for future drilling. The tenement package is relatively underexplored, particularly under cover, offering significant potential for further discoveries. Carnavale is actively pursuing these opportunities alongside advancing feasibility studies and environmental assessments.

With an 80% interest in the project and a joint venture partner holding 20%, Carnavale is progressing towards a Bankable Feasibility Study. The company’s methodical approach to resource expansion and study updates positions Kookynie as a promising development asset in the Australian gold sector.