Carnavale Resources Limited (ASX:CAV) has upgraded the mineral resource estimate at its Grey Dam Nickel-Cobalt Project following infill and extensional reverse circulation drilling in WA’s Goldfields.
After 5,000 metres of drilling and inter-laboratory check sampling, the company recorded the total mineral resource of 14.6 million tonnes at 0.75% nickel and 0.049% cobalt for 110,000 tonnes of nickel metal and 7,200 tonnes of cobalt metal.
Low-cost processing strategy
Carnavale managing director Andy Beckwith said: “Grey Dam is well located only one-hour drive from Kalgoorlie.
“We have defined a high-value shallow resource that should be readily amenable to an open pit mining strategy and our next step is to assess metallurgy and deliver on a low-cost processing strategy.”
The indicated category recorded 10.4 million tonnes at 0.76% nickel and 0.050% cobalt containing 78,700 tonnes of nickel metal and 5,200 tonnes of nickel cobalt metal.
The inferred category recorded 4.2 million tonnes at 0.74% nickel and 0.047% cobalt for 31,300 tonnes of nickel metal and 2,000 tonnes of cobalt metal.
Internal high-grade nickel and cobalt zones
Strong individual high-grade nickel or cobalt domains were identified within the upper portions of the deposit with the bulk of the high-grade mineralisation being less than 30 metres depth.
The high-grade cobalt domain almost entirely falls within the high-grade nickel domain with the shallow and flat-lying nature of the mineralisation lending itself to low strip ratio and simple open pit mining methods.
Next steps
The focus of on-going activities includes:
Metallurgical test work to determine a suitable processing flowsheet; and
Assessment of deeper nickel-cobalt-copper sulphide and gold mineralisation potential.
Initial metallurgical samples have been collected from recent RC drilling and Carnavale is preparing for a program of test-work to determine processing options.
This test work will focus on low-capex option including heap leach, vat leach on-site processing and simple physical upgrading to a higher-grade concentrate for direct sale to intersected third parties.
Previous drilling intersected sulphide mineralisation in drilling which has not been followed up and Carnvale is assessing the application of a detailed EM survey to target this style of mineralisation.
- Jessica Cummins