Carnavale Resources (ASX:CAV) has doubled the value of its Kookynie Gold Project in Western Australia, after completing a Scoping Study.
The study, which presents an open-pit mine development with an underground mine, highlights Kookynie with an undiscounted free cashflow of $237 million, representing a 126% increase from the previous 2024 Scoping Study.
Carnavale, which has a market capitalisation of $18.41 million, adds the study delivered a pre-tax net present value of $188 million with an internal rate of return of 165%.
The five-year mine life project has an initial production target of 970,000 tonnes @ 3.1 grams per tonne for 93,000 ounces of gold recovered – representing a 58% increase. The pre-production capital totals $3 million.
CEO Humphrey Hale says the company is pushing forward to complete a Feasibility Study and evaluate options to bring the project into production.
“The mining lease has been applied for with grant subject to finalising a mining heritage agreement with the Nyalpa Pirniku Traditional Owners,” Hale says.
“This process is well underway, and it is expected that the mining lease will be granted during the Feasibility Study work.”
The Kookynie Project, located within trucking distance to many operating gold processing plants, covers 50km2 and comprises two exploration licences and three prospecting licences.
Carnavale Resources is a Western Australian mineral explorer focused on acquiring and discovering projects prospective for gold, nickel, and platinum group metals.
Write to Aaliyah Rogan at Mining.com.au
Images: Carnavale Resources
