Caravel Minerals has lifted the confidence in its Caravel Copper Project with a 48% increase in Proved Ore Reserve tonnage, maintaining stable total contained copper while adding new metal grades to the reserve estimate.
- Proved Ore Reserve tonnage up 48% to 156Mt
- Total Ore Reserve at 597Mt with 1.42Mt contained copper
- First-time inclusion of molybdenum, silver, gold, iron, and sulphur grades
- Definitive Feasibility Study supports open-pit mining and 86% copper recovery
- Project targets construction readiness by Q1 2028 pending approvals
Significant Upgrade in Ore Reserve Confidence
Caravel Minerals (ASX:CVV) has announced a substantial upgrade to the Ore Reserve at its 100%-owned Caravel Copper Project in Western Australia's Wheatbelt region. The Proved Ore Reserve tonnage has jumped 48% to 156 million tonnes, a clear indicator of increased geological confidence following the November 2023 Mineral Resource update and detailed mining studies for the Definitive Feasibility Study (DFS). Despite this boost in classification, the total contained copper remains broadly steady at 1.42 million tonnes within a 597 million tonne reserve at 0.24% copper grade.
Ore Reserve Composition and New Metal Grades
The Ore Reserve is split between the Bindi and Dasher deposits, with Bindi accounting for the bulk of the Proved category. Notably, this update marks the first time Caravel has reported molybdenum, silver, gold, iron, and sulphur grades within the Ore Reserve, reflecting a more comprehensive understanding of the deposit's value beyond copper alone. The reserve is reported at a 0.10% copper cut-off grade, consistent with the Mineral Resource basis and assuming a copper price of US$4.76 per pound.
Mining and Processing Backed by Definitive Feasibility Study
The DFS, conducted by Mining Plus with input from specialist consultants, confirms the technical viability of conventional open-pit mining methods using ultra-class equipment such as 700-tonne class face shovels. Mining dilution and ore loss are estimated at 4% and 3%, respectively, with a minimum mining width of 100 metres to accommodate the fleet. Processing will employ a standard SABC comminution circuit followed by flotation, regrinding, and three-stage cleaning, targeting an 86% copper recovery to a concentrate grading at least 20% copper. Metallurgical testwork indicates no significant deleterious elements that would attract smelter penalties, supporting the economic assumptions underlying the Ore Reserve.
Environmental and Regulatory Progress
Caravel is advancing environmental studies and regulatory approvals, aiming for construction-ready status by the first quarter of 2028 and Ministerial approval by the end of 2027. The project benefits from strong local and Indigenous stakeholder engagement, including agreements with landholders and ongoing consultation with the Yued Aboriginal Corporation under the South West Native Title Settlement Area framework. While approvals for tailings storage and waste rock facilities remain pending, the company expresses confidence in meeting these milestones.
Funding and Offtake Negotiations in Motion
The project’s development timeline and financing are supported by recent strategic moves, including royalty funding and debt interest discussions. Caravel has secured additional royalty funding from Regal Resources and non-binding debt interest from European export credit agencies, underpinning the DFS and capital requirements. Offtake agreements are in negotiation, with Adani Enterprises reportedly involved, although terms remain subject to finalisation.
Bottom Line?
Caravel Minerals has enhanced the certainty of its copper asset with a marked upgrade in Proved Ore Reserves, setting a clearer pathway towards construction, but regulatory and offtake milestones remain key hurdles ahead.
Questions in the middle?
- Will Caravel convert substantial Inferred Resources into higher confidence categories with further drilling?
- How will the timing of environmental approvals influence the project's construction schedule?
- What are the prospects and terms of the ongoing offtake negotiations with major industry players?