Carnavale Doubles Kookynie Gold Value with $237m Cashflow Boost

Resource Upgrade and Project Economics

Carnavale Resources (ASX – CAV) has delivered a substantial update for its Kookynie Gold Project in Western Australia, reporting a revised JORC Mineral Resource Estimate (MRE) of 842,000 tonnes at 4.3 grams per tonne gold, equating to 117,000 ounces. This includes a standout high-grade bonanza zone of 60,000 tonnes at 28.3 grams per tonne containing 55,000 ounces, highlighting the project's rich potential.

The updated Scoping Study paints a robust economic picture, with an undiscounted cashflow forecast of approximately A$237 million, a net present value (NPV8) of A$188 million pre-tax, and an internal rate of return (IRR) of 165%. These metrics underscore the project's viability as a contract mining and toll treatment operation, positioning Kookynie as a compelling development opportunity.

Mining and Production Outlook

The project envisions an initial mine life of five years, with a payback period of just 14 months. Mining will commence with open pit operations, focusing on the Swiftsure and Tiptoe lodes, before transitioning to underground mining to access deeper ore. The plan anticipates processing approximately 970,000 tonnes at 3.1 grams per tonne gold, recovering around 93,000 ounces over the mine life.

Notably, 50% of production is expected from open pits, with the initial 305,000 tonnes at 4.32 grams per tonne delivering 42,000 ounces. The integration of open pit and underground mining phases aims to optimize resource extraction and project economics.

Capital Raising and Development Strategy

Supporting these developments, Carnavale successfully completed a $3 million placement to sophisticated investors post-quarter, alongside an underwritten non-renounceable entitlement offer to raise up to $4.09 million. These funds are earmarked for advancing the project through a Bankable Feasibility Study (BFS) targeted for completion in the second half of 2026.

The BFS will refine mining and processing plans, incorporate detailed geotechnical, metallurgical, environmental, and social assessments, and solidify funding and operational strategies. Carnavale aims to secure mining licenses, finalize heritage agreements, and negotiate processing arrangements to facilitate a smooth transition to production.

Exploration Upside and Future Potential

Beyond the current resource, exploration targets such as Champion South, McTavish, and North Valiant present promising opportunities to expand the resource base. The company’s ongoing drilling programs and geological studies aim to unlock further ounces and enhance project value.

CEO Humphrey Hale expressed optimism about the project’s trajectory, emphasizing the high-grade nature of the discovery and the strong economics underpinning development plans. The company’s strategic focus remains on fast-tracking Kookynie towards production while managing risks through thorough feasibility and environmental studies.