Carnavale Advances Kookynie Gold Project with High-Grade Drilling and Mining Lease

Mining Lease Granted and Project Consolidation

Carnavale Resources (ASX:CAV) has cleared a significant development milestone with the granting of Mining Lease M40/362, which consolidates all Kookynie Gold Project (KGP) resources under a single, strategically sized tenure. This lease covers the footprint for the proposed open pits, waste dumps, processing infrastructure, and access corridors, streamlining regulatory and operational planning.

The lease grant follows a series of tenement amalgamations, including the absorption of prospecting licences into exploration and mining licences, reflecting Carnavale’s intent to advance Kookynie from exploration towards production readiness. The company has also applied for a miscellaneous licence to secure road access for ore haulage, further underpinning logistics planning.

Drilling Results Reinforce High-Grade Continuity

The March quarter saw intensive drilling activity focused on the Swiftsure and Tiptoe deposits, with 138 reverse circulation (RC) holes drilled on a tight 10m x 10m grid designed to infill and upgrade resource confidence ahead of the Bankable Feasibility Study (BFS). This drilling confirmed excellent continuity of bonanza-grade gold zones, with mineralisation now defined less than 20 metres from surface, enhancing the potential for near-term mining.

Notable intercepts at Swiftsure included 7m at 28.3 g/t from 71m and 6m at 27.7 g/t from 97m, while Tiptoe delivered 3m at 26.1 g/t from 25m and 2m at 15.9 g/t from 32m. These results underpin the geological model of high-grade shoots plunging along the major quartz-carbonate vein structures and support the planned open pit designs.

Carnavale’s CEO Humphrey Hale highlighted the strong potential to add ounces within the final BFS open pit shells and noted that mineralisation extends beneath the pits, offering underground development opportunities. The infill drilling spacing essentially provides grade control resolution, significantly derisking the resource and enabling more precise mine scheduling. This drilling campaign builds on earlier programs that have steadily increased resource confidence and scale BFS drilling complete and Bonanza grades confirmed.

Advancing the Bankable Feasibility Study

Alongside resource drilling, Carnavale completed seven diamond drill holes totaling 474 metres to recover core for detailed metallurgical testwork, including hardness and leach tests, essential for optimising processing. Six geotechnical diamond holes provided critical data on pit wall stability to refine final pit designs at Swiftsure and Tiptoe.

Complementary studies included a LIDAR survey for surface water modelling, heritage surveys to support environmental compliance, and hydrogeological drilling establishing production and monitoring bores for pit dewatering. These integrated datasets feed into the BFS, which remains on track for completion in early Q3 2026, targeting a shovel-ready project status with defined reserves.

Cube Consulting continues to lead resource estimation and mine planning, progressing an updated Mineral Resource Estimate (MRE) that aims to upgrade a significant portion of Indicated resources to Measured, thereby enabling reserve calculations. The BFS will incorporate these refined inputs to deliver a comprehensive mining and economic evaluation.

Exploration Upside Beyond Current Resources

Carnavale’s geological team is actively planning further exploration drilling to test extensions at Swiftsure and Tiptoe, where bonanza-grade shoots remain open at depth. Additional targets within the tenement package, such as Champion South, McTavish, and Valiant, present promising opportunities to expand the resource base.

The company’s strategy includes developing the underground potential beneath the open pits, with access proposed via a portal within the Swiftsure pit. Underground mining is expected to continue beyond open pit completion, funded by operational cash flow, which could enhance project economics and mine life.

With a current cash balance of A$5.1 million and exploration expenditure of A$1.076 million for the quarter, Carnavale appears well positioned to execute its near-term work programs and maintain momentum towards production readiness.