A $2.2 million cash injection will help Carnavale Resources Ltd (ASX:CAV) add resource ounces to the Kookynie Gold Project with diamond and RC drilling.
The strong support received follows recent maiden mineral resource estimate and scoping study results from Kookynie.
Carnavale recently reported “exceptional” results from ongoing metallurgical test-work at the Swiftsure Deposit, part of the Kookynie Gold Project, 60 kilometres south of Leonora in Western Australia’s Eastern Goldfields.
The results show high gold recovery rates, ranging from 98.9% to 99.5%, with a gravity gold recovery rate averaging 87.1%.
Additionally, the recovery rate from the carbon-in-leach (CIL) test reached 99.7%. These findings suggest the potential for enhancing the project's economic viability.
The company also released a scoping study for Swiftsure, which indicates a promising economic outlook.
The study estimates a pre-tax net present value (NPV) of around A$91 million, with an internal rate of return (IRR) of 192%, based on a gold price of A$3,500 per ounce. These results further support the development of the project.
Raise gives CAV licence to go further
The company received commitments to raise the money (before costs) via a placement of some 666.7 million fully paid ordinary shares at an issue price of A$0.0033 per share.
Given the strength of support for the placement, Carnavale was able to expand the initial $2 million offer to reach A$2.2 million and introduce new, institutional, sophisticated and professional investors to the share register.
Carnavale is now well-funded to execute its planned exploration strategy while continuing to advance the mining licence application for the Swiftsure deposit.
“Carnavale is looking forward to drilling down-dip of Swiftsure deposit to add additional resources to the bonanza grades previously discovered. It is our aim to extend the mineralisation at depth and add ounces to the valuable resources at the project through organic exploration growth, CAV CEO Humphrey Hale said.
“In addition, the Kookynie Gold Project still has many, shallow, exploration targets that could host further high-grade gold shoots that have created so much value at the Swiftsure deposit, such as the Tiptoe and Valiant prospects along strike from the Swiftsure deposit. We are excited about including these shallow, fresh rock targets as part of the next phase of exploration.”