Carnavale Resources Ltd (ASX:CAV) has exercised its option to acquire an 80% interest in the Ora Banda South Gold Project from Western Resources Pty Ltd in return for $150,000 in cash and 15 million ordinary CAV shares.
Western Resources has agreed to a voluntary 3-month escrow on the shares issued and will be free carried until completion of a bankable feasibility study for the project.
“The company has advanced the Ora Banda South Gold Project from an exploration concept to a highly prospective package with multiple new gold prospects along extensive anomalous zones that strike for multiple kilometres containing high-grade gold in the regolith over a period of 24 months,” Carnavale Resources CEO Humphrey Hale said.
“The company is planning to drill deeper with reverse circulation (RC) to unlock the high-grade gold potential at depth.”
Exploration strategy
Carnavale has proposed a large work program for the Ora Banda South Project, including:
- RC drilling testing at depth and along strike from the shallow high-grade gold mineralisation defined by recent aircore drilling.
- Interpretation of the multi-element geochemistry and drainage anomalies to provide further understanding of the morphology of the mineralising systems.
- Identify additional targets within the Ora Banda South Gold Project tenement package.
- Evaluate new tenement opportunities adjacent to the project area.
The company is still awaiting the results of its third aircore program on the project, which was completed in August.