Kookynie Gold Lease Awarded: Carnavale Nears Production

Carnavale Resources Achieves Key Milestone Towards Kookynie Gold Production

Carnavale Resources (ASX:CAV) has taken a significant stride towards commencing gold production at its Kookynie project in Western Australia, with the recent granting of a crucial mining lease. This development is a pivotal step in transforming the Swiftsure and Tiptoe gold deposits into a producing asset.

The newly secured Mining Lease, designated M40/362, encompasses the high-grade Swiftsure and Tiptoe gold deposits. Importantly, this lease is strategically surrounded by the prospective exploration tenement E40/355, offering ample room for future expansion and exploration activities. The company has confirmed that the mining lease provides sufficient spatial capacity for all essential project development requirements. This includes areas for open-pit mining, waste dumps, ore stockpiling and crushing facilities, as well as workshops and administrative offices.

In parallel with securing the mining lease, Carnavale Resources has also lodged an application for a miscellaneous licence. This licence is vital for establishing a dedicated corridor that will connect the mining lease to the Kookynie-Malcolm Road, a key route leading to Leonora. This access is fundamental for facilitating the transportation of ore to third-party processing facilities.

The Kookynie project currently boasts an indicated and inferred resource of 842,000 tonnes, grading at an impressive 4.3 grams per tonne of gold. This translates to a contained gold resource of approximately 117,000 ounces.

Humphrey Hale, Chief Executive Officer of Carnavale Resources, expressed his satisfaction with this significant advancement. “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 stated. “This keeps Carnavale on track to complete the Bankable Feasibility Study (BFS) mid-year and bring the KGP to a shovel-ready project by Q3 this year.”

Drilling Underway to Inform Bankable Feasibility Study

A comprehensive drilling campaign is currently in progress at the Kookynie project. The primary objective of this drilling is to gather the detailed geological and geotechnical information necessary for the ongoing Bankable Feasibility Study (BFS). The company has deployed both reverse circulation (RC) and diamond drilling rigs to the site, with an additional RC rig scheduled to arrive shortly, aimed at accelerating the drilling program.

The BFS is anticipated to be finalised in the third quarter of 2026. Upon completion, it is expected to present a significantly de-risked, high-grade, and shovel-ready initial open-pit mining scenario. Furthermore, the study is also slated to explore the potential for subsequent underground mining operations.

Promising Economic Outlook for Kookynie

An updated scoping study, which was concluded in late 2025, has already outlined a robust economic case for developing Kookynie as a toll treatment operation. This study indicated the potential to generate free cash flow of approximately $237 million. Additionally, it projected a net present value (NPV) and an internal rate of return (IRR) – both key indicators of profitability – of around $188 million and 165%, respectively. Given the significant increase in the gold price since the study’s completion, these figures are likely to be even more favourable.

The initial production phase is projected to yield around 93,000 ounces of gold. The total pre-production capital expenditure is estimated to be approximately $3 million, with a maximum drawdown anticipated to be in the order of $21 million by the ninth month of operations.

Strategic Location Offers Processing Flexibility

The Kookynie project is strategically located within trucking distance of numerous operating gold processing plants in Western Australia’s Eastern Goldfields. This advantageous geographical position provides Carnavale Resources with considerable flexibility in how it chooses to monetise the Kookynie project’s gold resources, offering multiple viable processing pathways.