Carnavale Resources Ltd (ASX:CAV, FRA:YBB) earlier this week outlined further progress at the Kookynie Gold Project in Western Australia after completing key drilling programs designed to support the project’s bankable feasibility study (BFS).
Managing director Humphrey Hale said the company had recently completed infill and grade-control drilling across the proposed open pits at the project. The work forms part of the technical studies required to advance Kookynie towards potential development.
Hale explained that the drilling programs were aimed at gathering the detailed technical information required for the BFS, including geotechnical and metallurgical data. The company also completed geotechnical drilling to assess the stability of pit walls and collected samples for waste geochemical analysis.
Additional metallurgical test work is also underway. Hale said samples had been collected for crush-and-grind testing as well as recovery studies and variability testing.
According to Hale, the bankable feasibility study is designed to de-risk the project and provide the level of detail required for potential financing. He noted that the study would ultimately allow the company to pursue development funding.
Hale said earlier work had indicated relatively modest capital requirements for the project. He stated that the company estimated it would need “about $20 million to develop the project from a maximum drawdown position”.
The Kookynie Gold Project contains a high-grade component within the resource. Hale highlighted that approximately 60,000 tonnes grading around 28 grams per tonne gold equates to roughly 55,000 ounces, describing the grade profile as particularly strong.
Interview Highlights
- Carnavale Resources completed infill and grade-control drilling at the Kookynie Gold Project.
- Geotechnical drilling has been carried out to assess pit wall stability.
- Samples collected for metallurgical testing and waste geochemical analysis.
- Work supports the ongoing bankable feasibility study (BFS).
- The project is expected to require around $20 million in development capital.
- High-grade material includes 60,000 tonnes grading about 28 g/t gold for roughly 55,000 ounces.
- Earlier studies suggest a project NPV of around $290 million and $375 million in potential cash flow.
- Carnavale Resources is targeting production readiness in Q3 2026.
- The project currently hosts a resource of about 117,000 ounces of gold.
- Exploration within the broader tenement package could add further ounces.
Proactive: Welcome back to Proactive Investors. I’m your host Kerry Stevenson. Humphrey Hale joins us again, managing director of Carnavale Resources. The ASX code is CAV. The company has been advancing the Kookynie Gold Project in Western Australia. Humphrey, you have been moving quickly to advance the project towards production. What is the latest news?
Humphrey Hale: The latest news is that the company has completed infill and grade-control drilling on both of the proposed pits at Kookynie. The company has also undertaken geotechnical drilling to assess the stability of the proposed pit walls.
We have collected samples for waste geochemical analysis as well as metallurgical work. That includes crush-and-grind testing and recovery testing. We have also gathered material for variability testing.
All of this work is about providing the detail and information required for the bankable feasibility study so the project can be properly de-risked.
Proactive: Mining clearly involves a lot of technical work and detailed studies before production can begin.
Humphrey Hale: Absolutely. The feasibility study is all about detail, and a bankable study allows the company to raise money to develop the project.
The project itself does not require a lot of capital. In the earlier scoping study, the company estimated around $20 million would be needed from a maximum drawdown position to develop the project.
There is around 60,000 tonnes grading about 28 grams per tonne for roughly 55,000 ounces, which is a very high-grade component of the project. At a gold price assumption of about A$3,700 per ounce, the project shows a net present value of around $290 million with approximately $375 million in projected cash flow.
The work currently underway as part of the bankable feasibility study is aimed at preparing the project for potential production in the third quarter of this year.
Proactive: What else is in the pipeline for Carnavale Resources beyond this project?
Humphrey Hale: The main focus has always been to bring this valuable project into production and crystallise that value. However, the company continues to look for new opportunities beyond the current project.
Within the Kookynie tenements there are also areas of exploration potential that have not yet been targeted. While the drilling program continues for the feasibility work, the company will also undertake exploration to try to add ounces to the existing resource of about 117,000 ounces.
Proactive: Early cash flow could also reduce the need for further shareholder dilution.
Humphrey Hale: Yes. The plan is to have the feasibility study ready and then determine the best development pathway. The company could develop the project itself, enter a joint venture, or potentially sell the project if the right opportunity arises. There are several options that could create value for shareholders.
Proactive: Humphrey, thanks very much for the update.
Humphrey Hale: Thank you.