Carnavale Confirms Bonanza Grades as Kookynie Feasibility Study Advances

Bonanza Grades Reinforce Kookynie’s High-Grade Credentials

Carnavale Resources (ASX:CAV) has delivered a fresh wave of high-grade assay results from its Kookynie Gold Project (KGP) in Western Australia, confirming the continuity of bonanza-grade gold mineralisation at the Swiftsure and Tiptoe prospects. The latest reverse circulation (RC) and diamond drilling, conducted on a tight 10m x 10m infill pattern, has delineated mineralisation less than 20 metres from surface and within the proposed open pit shells, providing a strong foundation for resource upgrades and reserve definition.

Notable intercepts include 7m at 28.3g/t from 71m and 3m at 37.2g/t from 74m at Swiftsure, alongside 3m at 26.1g/t from 25m at Tiptoe. These results not only reinforce the high-grade nature of the deposit but also hint at potential underground extensions beneath the pits, suggesting a multi-phase mining scenario.

Resource Confidence and BFS Progress

The infill drilling program aims to upgrade resources from the Indicated to Measured category, a critical step for reserve estimation and mine planning. Cube Consulting continues to support Carnavale with resource estimation and mine design, advancing the Bankable Feasibility Study (BFS) that remains firmly on track for early Q3 2026 completion. The BFS incorporates detailed geotechnical drilling, metallurgical sampling, hydrological assessments, and heritage surveys, underpinning a de-risked, shovel-ready project.

This progress builds on the recent mining lease grant (M40/362) and follows an extensive drilling campaign highlighted in the March 2026 update, which recovered over 150 kg of core for metallurgical testwork and refined pit wall designs at Swiftsure and Tiptoe. The integration of these data points enhances operational confidence and supports Carnavale’s aggressive timeline.

Robust Economics Highlighted in Scoping Study

The October 2025 Scoping Study, prepared by Cube Consulting, outlined a compelling economic case for Kookynie, with a pre-tax NPV8 of approximately A$188 million and an internal rate of return (IRR) of 165% at a gold price of A$5,500 per ounce. The study envisages a payback period of just 14 months on pre-production capital, driven by an initial production target of around 93,000 ounces at 3.1g/t over a 61-month mine life combining open pit and underground operations.

Revenue projections approach A$501 million with free cash flow after capital expenditure estimated at A$237 million before tax. Sensitivity analysis within the study shows the project remains economically viable across a range of gold prices, underscoring its resilience to market fluctuations.

Exploration Upside and Underground Potential

Carnavale’s geological team is optimistic about the exploration upside beyond the current resource envelope. Targets such as Champion South, McTavish North, and Valiant within the tenement package remain untested or underexplored. The continuity of bonanza-grade shoots at depth, particularly beneath the depleted saprolite at Swiftsure and Tiptoe, presents high-priority drilling targets that could materially add to the resource base.

The company plans to develop underground mining operations in tandem with open pit production, leveraging cash flow to fund underground decline development. Access to the underground portal is proposed from within the Swiftsure pit, aiming for seamless transition and sustained gold output.

These developments follow the group's recent completion of key BFS drilling which laid the groundwork for the current resource confidence and mine planning efforts.

Permitting and Community Engagement

Permitting progress includes the granting of the mining lease M40/362 and completion of two heritage surveys in collaboration with the Nyalpa Pirniku people, whose native title claim has been recognized. These steps are critical to ensuring regulatory compliance and community support, enabling Carnavale to advance towards construction readiness.

Hydrological studies, including a detailed LIDAR survey and establishment of production water bores, further de-risk the project by informing water management and mine site layout planning.