- Simple, robust open pit mining scenario
- Shallow High Grade open pits
- Financially viable and low capex project
- Future potential by transition into larger underground mining
Carnavale Resources (ASX: CAV) has released a simple, robust bankable feasibility study (BFS) that details the development of initial open-pit development at the Kookynie gold project in Western Australia.
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The company told shareholders the study provides a financially viable, high grade, low capex, open pit mining and production scenario that generates a significant initial cashflow prior to transitioning to the larger underground mining potential.
The BFS highlights includes:
- Strong internal rate of return (IRR) and significant free cashflow
- Un-discounted pre–tax free cash flow of $104 million,
- NPV8 $87 million and IRR of 417% at a base case of A$6,000/oz
The mine has been modelled to operate as a contract mining operation through an ore purchase agreement with high-grade ore to be produced from open pit production from Swiftsure and Tiptoe.
The BFS features open pit mine production of 220,000 tonnes at an average grade of 5.0 grams per tonne (g/t) for 35.6 koz of gold with an open pit mine life of 18 months, to be extended into underground.
“Completion of the BFS is the latest milestone and culmination of a four-year journey since the company discovered the KGP in January 2022,” MD, Humphrey Hale, told shareholders.
“Carnavale conducted the BFS to evaluate the economic viability of the Swiftsure and Tiptoe deposits as a result of a positive scoping study completed in October 2025. The BFS only considered the open pit development at the KGP to fast track and simplify the project’s path to mining.
Carnavale (80%) intends to develop the KGP in partnership with our joint venture partner WR (20%) via initial open pit mining of the shallow Swiftsure and Tiptoe’s resources, and then use the cashflow generated over the first 18 months of open pit production to transition into underground mining of the larger underground Swiftsure resource.”
The overall project, including proposed future underground mining, has the potential to produce approximately 93k ounces of gold with the orebody remaining open at depth and along strike.
Mr Hale said further drilling is planned around existing resources to upgrade Inferred resources into Indicated and extend known mineralisation envelopes.
The Swiftsure and Tiptoe deposits are open along strike and at depth. There is significant potential to extend the known resources by targeted exploration drilling to add further ounces. To reduce the cost of drilling it is anticipated that some of this exploration drilling could be completed from within the proposed underground mine.
“There is significant potential for further exploration success within the tenement package that hosts the KGP. Fresh exploration is underway, targeting new prospective zones along the granite- greenstone contact northeast of Swiftsure.”
CAV was up 9.09% to 7.2¢. Mkt cap $26.93M.
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