Carnavale Resources has marked key progress at its Kookynie Gold Project, signing a pivotal Heritage and Mining Agreement and launching a Bankable Feasibility Study aimed at production by mid-2026.
- Heritage and Mining Agreement signed with Nyalpa Pirniku native title holders
- Bankable Feasibility Study underway targeting mid-2026 completion
- Mining lease application lodged covering key tenement M40/362
- Capital raising completed with $7.1 million secured via placement and entitlement offer
- Exploration expenditure of $590,000 supports ongoing resource expansion
Heritage Agreement Paves Way for Development
Carnavale Resources Limited (ASX – CAV) has taken a significant step forward in advancing its high-grade Kookynie Gold Project (KGP) in Western Australia. During the December 2025 quarter, the company successfully executed a Heritage and Mining Agreement with the Nyalpa Pirniku native title holders, represented by Wangkatja Tjungula and Western Aboriginal Resources Corporation Ltd (WTAC). This agreement is a critical milestone, securing the cultural heritage protections and compensation frameworks necessary to progress mining lease applications and operational approvals.
The agreement reflects a cooperative partnership that respects the cultural and environmental values of the land, incorporating ethnographic surveys and heritage protocols to ensure responsible development. Carnavale CEO Humphrey Hale emphasised the importance of this collaboration, noting it as the final step before operational mining phases can commence.
Bankable Feasibility Study Targets Production
Building on a strong Scoping Study reported in October 2025, Carnavale has initiated a Bankable Feasibility Study (BFS) aimed at delivering a definitive development plan for the KGP. The BFS encompasses detailed metallurgical testwork, geotechnical drilling, environmental assessments, and economic modelling. The company targets completion of the BFS by mid-2026, with plans to commence production in the second half of the year.
The BFS will refine mining and processing strategies, optimise pit design, and evaluate funding options. Early metallurgical results suggest gold recoveries between 97% and 99%, supporting robust project economics. The study also includes environmental and social community engagement to meet or exceed regulatory requirements.
Capital Raising Strengthens Financial Position
To support ongoing development and exploration activities, Carnavale completed a $3 million placement in October 2025 and an underwritten non-renounceable entitlement offer raising approximately $4.09 million. These capital injections bolster the company’s balance sheet, providing approximately 7.7 quarters of funding based on current expenditure levels. The company also implemented a 15 – 1 share consolidation approved at its November 2025 Annual General Meeting, streamlining its capital structure.
Exploration and Resource Growth
Exploration expenditure for the quarter was $590,000, focused on infill and grade control drilling to support BFS inputs. Carnavale reported a significant increase in mineral resources at Kookynie, with a 38% rise in total resources and a 46% increase in the indicated category. These gains underpin the positive economic outcomes from the recent Scoping Study and enhance the project’s development potential.
The company continues to explore extensions of high-grade gold mineralisation within the project area, with no culturally significant sites identified in proposed mining zones, facilitating smooth progress towards mining lease approvals.
Leadership and Governance Updates
Following the AGM, Carnavale appointed Andy Beckwith as Chairman, with Mr Gajewski transitioning to a Non-Executive Director role. The company maintains strong governance practices and transparent reporting, with related party payments disclosed in line with ASX requirements.
Bottom Line?
With heritage agreements secured and feasibility studies underway, Carnavale is poised to unlock Kookynie’s potential, but execution risks remain as it moves toward production.
Questions in the middle?
- Will the Bankable Feasibility Study confirm the economic viability suggested by the Scoping Study?
- How will the heritage agreement impact the timeline and costs of mining lease approvals?
- What are Carnavale’s plans for further resource expansion beyond current drilling programs?