Carnavale Resources Ltd (ASX:CAV, FRA:YBB) has cleared a key regulatory hurdle at its Kookynie Gold Project in Western Australia, with the granting of a mining lease that covers all existing project resources and supports the company’s push towards a bankable feasibility study (BFS) and near-term development.
The ASX-listed explorer said Mining Lease M40/362 — which hosts the Swiftsure and Tiptoe high-grade gold resources — has now been formally granted. The project is located around 60 kilometres south of Leonora and 180 kilometres north of Kalgoorlie, within a well-established gold mining region.
Carnavale tenement plan showing location of M40/362.
Mining lease covers full development footprint
The granted Mining Lease M40/362 provides sufficient area to support all planned mine development activities at Kookynie, including open pits, waste dumps, run-of-mine handling and crushing facilities, as well as workshops and offices.
Carnavale said the lease hosts all current Kookynie Gold Project resources and sits within a broader package of surrounding exploration tenure, which continues to offer additional discovery and expansion potential beyond the existing resource base.
Chief executive Humphrey Hale said the lease approval marks another step towards bringing the project into production.
“It is very pleasing to have hit another milestone on our path to production, with the granting of the mining lease for the Kookynie Gold Project,” Hale said.
“This keeps Carnavale on track to complete the BFS mid-year and bring the KGP to a shovel-ready project by Q3 this year.”
BFS drilling program ramps up on site
The mining lease approval comes as Carnavale continues a substantial drilling campaign designed to underpin the bankable feasibility study currently under way at Kookynie.
The company has a reverse circulation (RC) drill rig and a diamond rig operating on site, with a further RC rig scheduled to arrive next week. Drilling is aimed at providing the detailed geological, metallurgical and geotechnical data required to finalise the BFS.
RC and Diamond Drilling onsite at the Swiftsure proposed pit site.
Carnavale expects the study to outline a significantly de-risked, high-grade initial open-pit mining scenario, with potential for subsequent underground development, subject to final regulatory approvals.
The BFS remains on schedule, with completion targeted for Q3 2026.
Indicative timetable for BFS study work.
Tenement structure refined to support development
As part of the feasibility and mine development process, Carnavale has restructured its tenement holdings at the Kookynie Gold Project.
Most of the area previously held under prospecting licence P40/1380 has been incorporated into the new mining lease M40/362, while prospecting licence P40/1381 has been amalgamated into exploration licence E40/355. The new mining lease has also been granted over a portion of the earlier exploration licence.
Access and transport approvals progressing
Carnavale has also applied for a miscellaneous licence to establish a transport corridor linking the mining lease to the Kookynie–Malcolm Road, which provides access to Leonora and potential third-party treatment facilities.
In addition, a small new prospecting licence has been added to the tenement package, providing further scope for exploration success.
While further statutory approvals are required before mining can commence, Carnavale said the granting of the mining lease clears a key pathway towards development as feasibility work continues.
