Carnavale Resources Ltd (ASX:CAV, FRA:YBB) reported material project and corporate milestones during the December 2026 quarter, with activity focused on the high-grade Kookynie Gold Project (KGP) in Western Australia.
“The December quarter saw the KGP hit some significant project milestones. Carnavale kickstarted a Bankable Feasibility Study to develop the project on the back of strong Scoping Study numbers reported in October 2025," CEO Humphrey Hale said.
"In addition, Carnavale has developed a good relationship with WTAC and the Nyalpa Pirniku people that has resulted in the signing of a jointly beneficial Heritage and Mining agreement to develop the KGP. It is full steam ahead to complete the BFS by the middle of the year and bring the KGP into production.”
Kookynie Gold Project: Native title agreement secured
During the quarter, Carnavale and joint venture partner Western Resources Ltd (20%) executed a Mining and Heritage Agreement with Wangkatja Tjungula Aboriginal Corporation (WTAC), representing the Nyalpa Pirniku native title holders.
The agreement represents the final step required prior to the granting of mining lease application M40/362, which covers the KGP and has already been lodged with the Department of Mines, Petroleum and Exploration (DMPE).
It also establishes a framework for cooperation with WTAC across exploration, development and operational phases, and includes provisions covering cultural heritage management, compensation, employment and contracting opportunities, and milestone-based and royalty-linked payments once production commences.
Heritage surveys completed with no constraints identified
Following execution of the agreement, WTAC completed an ethnographic and archaeological survey across the proposed mining lease area under the new heritage protocol.
The survey covered proposed open pit areas and locations required for BFS drilling, including geotechnical drilling, water bores and infill drilling. No culturally significant sites were identified within the proposed mining or drilling areas, allowing Carnavale to progress development programs without restriction.
Clearing activities required for BFS drilling commenced during the quarter, with drilling expected to begin before the end of January 2026.
BFS underway following scoping study outcomes
Carnavale commenced a Bankable Feasibility Study (BFS) during the quarter, following the release of a revised scoping study in October 2025 that outlined improved project economics.
The scoping study incorporated a 38% increase in total mineral resources, supported by a 46% increase in the indicated resource category, following additional RC and diamond drilling completed during 2024 and 2025.
The company said its near-term focus is to advance the KGP to a mine-ready position and secure mining approvals during 2026.
Development strategy and BFS work program
The BFS is assessing an initial open pit mining scenario with toll treatment via a third-party processing facility, with completion targeted for the second half of 2026.
Key components of the BFS include definition of maiden open pit reserves, finalisation of the mining lease and access approvals, evaluation of third-party mining and milling options, and advancement of technical, environmental and social studies required to support development.
Metallurgical testwork completed to date has indicated gold recoveries of 97–99%, with further variability testing planned across the orebody. Geotechnical drilling is underway to optimise pit slope design and potentially reduce strip ratios, while infill and grade control drilling is aimed at reducing early mining risk.
Additional studies include geochemical waste characterisation, hydrology and hydrogeological assessments, water bore drilling, and environmental and community engagement programs to support regulatory approvals and social licence.
Corporate: Capital raisings and board changes
In October 2025, Carnavale completed a $3 million placement at $0.0035 per share, issuing approximately 857.1 million shares to professional and sophisticated investors.
This was followed by a fully underwritten non-renounceable entitlement offer, raising a further $4.09 million, with Canaccord Genuity (Australia) Ltd acting as underwriter. Directors participated as sub-underwriters for the shortfall.
At the company’s annual general meeting held on November 27, 2025, shareholders approved a 15-for-1 capital consolidation. Following the AGM, Mr Gajewski stepped down as non-executive chairman to remain as a non-executive director, with Mr Beckwith appointed as non-executive chairman.