Carnavale Resources Ltd (ASX:CAV, FRA:YBB) earlier this week confirmed it had commenced Bankable Feasibility Study drilling at the Kookynie Gold Project in Western Australia, marking a key step in the transition from development planning toward potential production.
The company said the drilling program had begun with metallurgical drilling, designed to collect large-diameter core samples for crushing and grinding test work. Managing director and CEO Humphrey Hale told Proactive that this information would feed directly into the Bankable Feasibility Study and help de-risk the proposed mining operation.
Interview Highlights
- BFS drilling has commenced at the Kookynie Gold Project in Western Australia
- Metallurgical drilling is collecting large-diameter core for test work
- Two RC rigs are being deployed for infill drilling to improve resource confidence
- Geotechnical drilling will support open pit wall design and potential strip ratio reduction
- Hydrogeological drilling will assess dewatering requirements and water balance
- Heritage surveys and site preparation were completed ahead of drilling
- Carnavale Resources Ltd raised $7 million to fund the current work program
- The company is targeting completion of the BFS by the September quarter
- Management aims to have the project shovel ready in Q3
Proactive: Welcome back to Proactive Investors. I’m your host Kerry Stevenson and today I’m joined by Humphry Hale, CEO of Carnavale Resources Ltd (ASX: CAV). The company has begun drilling at its Kookynie Gold Project in Western Australia. Humphry, good to see you again.
Humphrey Hale: Good morning, Kerry. We’re on site and drilling has begun. The first rig mobilised over the weekend and that’s a metallurgical drilling rig collecting large-diameter core. This material will be used for crushing and grinding test work that feeds directly into the Bankable Feasibility Study.
Proactive: That sounds like a busy start to the year.
Humphrey Hale: It certainly is. Arriving today is the first of two reverse circulation rigs, which will focus on infill drilling. This work is aimed at improving the resource category and de-risking the early operational and payback period of the mine. After that, we’ll move into geotechnical drilling to support open pit wall design, with opportunities to improve economics by reducing the strip ratio.
Proactive: What comes after that phase?
Humphrey Hale: Once the main drilling is complete, likely over four to six weeks, we’ll move into hydrogeology. That includes drilling production and monitoring bores to support dewatering studies and establish the site’s water balance so we can properly plan mining operations.
Proactive: It sounds like a lot of groundwork has already been completed.
Humphrey Hale: That’s right. We completed heritage surveys, site clearing and pad preparation in advance. That meant when drilling commenced, everything was ready to go and we could hit the ground running.
Proactive: What are the key milestones investors should be watching this year?
Humphrey Hale: Funding and permitting are always critical. We raised $7 million late last year to recapitalise the company and fund this work. The drilling and technical studies will feed into the Bankable Feasibility Study, which we expect to complete by the September quarter.
Proactive: Does that mean the project could be shovel ready by then?
Humphrey Hale: Yes, that’s the goal. Completing the BFS allows us to consider development funding, whether through debt or equity. The capital required is relatively modest, and the project economics remain strong given current gold prices.
Proactive: Great to hear. Thanks for the update, Humphrey.
Humphrey Hale: Thanks very much, Kerry.