Early Open Pit Risks Lowered as Kookynie Resource Confidence Increases but Metallurgy Pending

Resource Confidence Boosts Early Open Pit Prospects

Carnavale Resources Ltd (ASX:CAV) has delivered a modest yet meaningful upgrade to its Kookynie Gold Project Mineral Resource Estimate (MRE), now standing at 855,000 tonnes grading 4.4 g/t gold for 120,000 ounces; a 2.5% increase on last year’s July 2025 figure. The standout feature is the addition of a substantial Measured resource category, comprising 182,000 tonnes at 5.1 g/t for 30,000 ounces, which accounts for 25% of the total MRE and significantly de-risks the project’s initial open pit phase.

This upgrade is underpinned by a detailed 10m x 10m infill drilling campaign completed in early 2026, designed to tighten confidence in the shallow, high-grade zones within the proposed pits at the Swiftsure and Tiptoe lodes. The result is a resource now 67% classified as Measured and Indicated, a meaningful jump from previous classifications that should improve ore scheduling and financial predictability during the critical early years of mining.

Open Pit Resources Confirmed with Bonanza-Grade Core

Above the 320mRL cut-off, which delineates open pit potential, the resource totals 409,000 tonnes at 3.9 g/t for 52,000 ounces. Notably, 58% of these shallow resources are now Measured, including a bonanza-grade core exceeding 29 g/t gold within plunging shoots at Swiftsure, confirming continuity and grade consistency near surface. Oxide material accounts for 21% of the open pit resource, starting as shallow as 20 metres below surface, enhancing the potential for low-cost early mining.

Managing Director Humphrey Hale emphasised the importance of this upgrade, noting it “significantly enhances the shallow potential open pit resources that confirms the continuity and grade within the bonanza gold zone.” He highlighted that the increased Measured classification is expected to strengthen financial outcomes during the initial two years of mining, a phase critical for project payback.

Bankable Feasibility Study on Schedule with Optimisations Underway

The Bankable Feasibility Study (BFS), targeting completion in early Q3 2026, remains on time and budget. It will incorporate this updated MRE along with forthcoming detailed metallurgical results. Open pit optimisation work has already commenced, integrating revised geotechnical data and updated revenue assumptions reflecting the improved gold price environment since the last study.

The project’s low capital expenditure strategy involves initial open pit mining transitioning to underground operations, with ore to be toll treated at a nearby third-party processing facility. This approach aims to reduce upfront infrastructure costs and expedite production timelines.

Exploration Upside Remains Strong Along Strike and at Depth

Despite the resource upgrade, the mineralisation remains open at depth and along strike, presenting opportunities to further expand the resource base. Additional targets within the Kookynie tenement package, including Valiant, McTavish North, and Champion South, have been identified for future drilling campaigns. A recently completed gravity survey has also highlighted promising structural targets at depth.

This exploration potential is significant given that the project area remains relatively underexplored beneath shallow cover, and historic mining in the region has produced high-grade ounces, notably from the nearby Cosmopolitan mine which yielded over 331,000 ounces at 15 g/t gold historically.

Technical Rigor Supports Resource Upgrade

The updated MRE was prepared by Cube Consulting using industry-standard estimation techniques, including Categorical Indicator Kriging to delineate low, medium, and high-grade domains. The resource classification is supported by rigorous QA/QC protocols, detailed geological modelling, and a comprehensive drilling database comprising 585 holes drilled by Carnavale since 2020.

The resource is reported at a 0.8 g/t cut-off for open pit material above 320mRL and 1.5 g/t for underground material below this level. Bulk density measurements and metallurgical testwork indicate gold recoveries between 97% and 99%, assumptions that will be refined with ongoing testwork.

This MRE update builds on a series of recent developments, including the granting of a key mining lease and high-grade drilling results, which have been instrumental in advancing the BFS and moving the project closer to production readiness. The appointment of Humphrey Hale as Managing Director earlier this month further underscores the company’s focus on delivering the Kookynie project into production efficiently and effectively.

With the BFS due imminently and exploration targets primed for follow-up, Carnavale’s Kookynie Gold Project is shaping up as a compelling high-grade, near-term mining opportunity in the Eastern Goldfields of Western Australia, combining solid resource fundamentals with a clear path to development and production.