Carnavale Resources Ltd (ASX:CAV) has unveiled an updated scoping study for its Kookynie Gold Project in Western Australia, with the results more than doubling the project’s valuation compared with its initial June 2024 study.
The new assessment, prepared by independent consultants Cube Consulting Pty Ltd, outlines a combined open pit and underground mining development across the Swiftsure and Tiptoe deposits, highlighting robust economics supported by higher production targets, a rising gold price and conservative cost assumptions.
Plan of Kookynie Gold Project with prospects and Swiftsure pit outline
Stronger financial case
The scoping study points to free cashflow of around A$237 million, a 126% lift on the previous estimate, underpinned by revenue of about A$501 million at a gold price of A$5,500 per ounce. The pre-tax net present value (NPV8) comes in at A$188 million with an internal rate of return of 165% — both more than double the figures in the 2024 scoping study.
Production is expected to reach 93,000 ounces of gold over a five-year mine life, including 55,000 ounces from a bonanza zone grading 28.3 g/t. Total pre-production capital is modest at about A$3 million, with peak funding requirements of A$21 million expected in the ninth month of operations. The study anticipates payback of that capital in just 14 months.
Operating costs are estimated at A$2,466 per recovered ounce, with half of the output to come from open pits, led by the Swiftsure pit at 4.32 g/t for 42,000 ounces.
Mineralised lodes looking East - resources classified by colour. (orange – indicated, yellow – inferred, Blue – unclassified not present.)
Project momentum building
Chief executive Humphrey Hale said the updated study reflects both higher grades and stronger pricing.
“Carnavale is delighted with the results of the updated scoping study — the project valuation has doubled with the free cashflow increasing by 126%. This is attributable to a 58% increase in the production target and a significant increase in the gold price over the past 12 months,” Hale said.
“Carnavale is pushing forward to complete a feasibility study and evaluate options to bring the Kookynie Gold Project into production.”
He added that the company has applied for a mining lease, with grant subject to finalising a heritage agreement with the Nyalpa Pirniku traditional owners, a process now well under way.
Exploration and upside
The scoping study focuses on the Swiftsure and Tiptoe deposits but leaves additional exploration prospects — including Valiant, McTavish North and Champion South — outside the current production target. Carnavale believes these zones could deliver further high-grade ounces and extend mine life.
Recent resource updates lifted the project’s total resource to 117,000 ounces, with most of the initial production sourced from the Indicated category, supporting confidence in the mine plan.
Read more: Carnavale lifts Kookynie resource 38% following successful drill program
Tenement outlines, Prospect locations and historic mines over geology
Looking ahead, Carnavale plans to advance feasibility work, optimise pit and underground designs, and continue exploration drilling to expand the resource base. Metallurgical test work to date has suggested strong recoveries of 97–99%, offering further upside to project economics.
With its low up-front capital needs, short payback period and strong cashflow profile, the Kookynie Project is positioned as a potentially high-margin, near-term development in WA’s Eastern Goldfields.