Kookynie Gold Project Expands with High-Grade Gold Discoveries at Swiftsure and Tiptoe
Carnavale Resources Ltd (ASX: CAV) has announced impressive drill results from its Kookynie Gold Project, with multiple high-grade gold intercepts that significantly expand the resource potential across three distinct lodes.
Gold Project Grows with Multiple High-Grade Zones
The latest drilling program at Kookynie, located 60km south of Leonora and 180km north of Kalgoorlie, has successfully extended and infilled gold mineralisation across three high-grade gold lodes spanning 1,500m of strike length – Swiftsure, Swiftsure South, and the newly discovered Tiptoe Lode.
Key highlights include:
- Swiftsure Lode tested to +400m vertical depth with diamond drilling producing exceptional intercepts including 2.5m @ 21.5g/t from 336.8m and 6m @ 8.4g/t from 125m
- Swiftsure South extended and infilled with significant results including 3m @ 6.8g/t from 267m
- Tiptoe Lode defined over 200m of strike and 160m depth with shallow high-grade results including 7m @ 3.5g/t from 121m
The positive results have prompted Carnavale Resources Ltd to initiate an updated Mineral Resource Estimate (MRE) and Scoping Study, scheduled for completion in the September quarter.
Deep Extensions to Swiftsure Prove High-Grade System Continuity
The recent drilling program at Swiftsure has confirmed that high-grade gold zones continue well below the current resource zone. Most notably, hole MEPC018 intersected 4.1m @ 2.75g/t that included 0.75m @ 11.35g/t at a depth of 443m downhole, marking the deepest intercept at the project to date.
Other significant Swiftsure intercepts include:
- 2.5m @ 21.5g/t from 336.8m in MEPC021
- 6m @ 8.4g/t from 125m including 1.3m @ 24.1g/t in MEPC019
These results demonstrate that the Swiftsure mineralisation forms part of a large system that remains open at depth and along strike, providing substantial growth potential for the Carnavale Resources Ltd gold discoveries.
Newly Discovered Tiptoe Lode Adds Near-Surface Ounces
The Tiptoe discovery, located 200m northeast along strike from Swiftsure, represents an exciting addition to the Kookynie Project. This newly identified lode is defined over 200m of strike and 160m of depth, with mineralisation remaining open in all directions.
Recent drilling has extended Tiptoe down dip with key intercepts including:
- 7m @ 3.5g/t from 121m (including 2m @ 6.9g/t) in MERC134
- 2m @ 4.9g/t from 155m in MERC145
Importantly, Tiptoe was not included in the June 2024 Mineral Resource Estimate, providing an opportunity to add shallow, mineable high-grade gold discovery to the project's overall resource.
What is a Mineral Lode?
A mineral lode refers to a distinct zone or vein of mineralisation that contains valuable metals. At Kookynie, the gold lodes are characterised by quartz veins associated with pyrrhotite and pyrite minerals and sericite alteration within sheared wallrock.
The multiple lodes at Kookynie are particularly significant for investors because they demonstrate:
- System Scale – Multiple parallel structures indicate a large mineralised system
- Grade Continuity – Consistent high-grade intercepts across multiple lodes
- Depth Potential – Mineralisation extending beyond 400m vertical depth suggests long-term mine potential
- Development Flexibility – Shallow lodes like Tiptoe may provide early, low-cost mining options
These characteristics collectively enhance the economic potential of the Carnavale Resources Ltd gold discoveries at Kookynie.
Robust Economics Underpinned by Gold Price Tailwinds
Carnavale's June 2024 Scoping Study demonstrated compelling economics for the Swiftsure deposit alone, with a pre-tax NPV8 of approximately A$91 million and an IRR of 192% at a gold price of AU$3,500/oz.
With gold now trading above AU$5,000/oz, the updated Scoping Study has potential for significantly enhanced economics. The initial Scoping Study parameters included:
| Metric | Value |
|---|---|
| Pre-tax NPV8 | A$91 million |
| IRR | 192% |
| Mine Production Target | 421kt @ 4.6g/t for 62koz Au |
| Undiscounted Cashflow | A$105 million |
| Pre-production Capital | Approximately A$3 million |
| Maximum Drawdown | A$12.9 million |
| Payback Period | 14 months |
Importantly, these figures were based solely on the Swiftsure deposit and used a gold price of AU$3,500/oz, approximately 30% below current prices.
"Whilst the Kookynie Gold Project has further exploration growth, which will add to shareholder value, the Project has reached a critical mass to explore development options," said CEO Humphrey Hale.
Development Pathway Accelerating
The company has made significant progress in advancing the gold targets at Kookynie project toward development:
- Applied for a mining license
- Initiated discussions with potential earthmoving partners
- Commenced an updated MRE and Scoping Study for completion in the September quarter
These initiatives position Kookynie as a potential near-term production asset capable of generating significant cash flow in the current high gold price environment.
Why Investors Should Track Carnavale Resources Ltd Gold Discoveries
The latest drilling results at Kookynie reinforce several compelling reasons for investors to follow Carnavale's progress:
- Resource Growth Potential – All three lodes remain open with continued exploration success
- Near-Term Production Opportunity – Mining license applied for, with initial scoping study demonstrating robust economics
- Gold Price Leverage – Current gold price approximately 30% higher than used in initial economic studies
- Low Capital Intensity – Pre-production capital of only A$3 million with fast payback
- High-Grade Focus – Consistently gold discoveries along trends across multiple zones
With an updated Mineral Resource Estimate and Scoping Study due in the September quarter, Carnavale Resources Ltd is advancing rapidly toward development decisions that could transform the company's valuation profile. Furthermore, the potential for copper-gold porphyry systems in the region adds another dimension to the company's exploration upside.
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