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Carnavale Resources sets stage for strong newsflow from new gold strategy

The company has recently added two highly prospective gold projects to its portfolio and is planning electromagnetic surveys, aircore drilling, soil sampling and other exploration activities in coming months.

Carnavale Resources Ltd - Carnavale Resources sets stage for strong newsflow from new gold strategy

Carnavale Resources Ltd (ASX:CAV) (FRA:YBB) has set the stage for strong upcoming newsflow from recent acquisitions as a new strategy focused on gold adds a new dimension to the company’s existing nickel strategy.

The company has recently added two highly prospective gold projects to its portfolio – Kookynie and Ora Banda South.

Kookynie exploration programs are underway which will include soil sampling, a detailed aeromagnetic survey and 6,000 metres of aircore drilling during the current quarter.

At Ora Banda South, soil sampling is planned to start this quarter with aircore drilling planned in the first quarter of 2021.

Highly prospective and under-explored

Carnavale executive chairman Ron Gajewski said: “Our exciting new gold projects add a new dimension to our existing nickel portfolio.

“All our projects are highly prospective and under-explored and located in well-endowed regions near existing mines.

“I am particularly excited about the potential to discover high-grade gold resources in the current high gold price environment.”

“The company is well-positioned with a cash balance of $3.6 million after strong support from option holders, many of which are long term shareholders, who exercised their listed options raising $2.76 million.

“We are actively exploring with a strong news flow expected during the next quarter and beyond.”

Gold projects

The company has recently secured two new and under-explored gold projects in well-endowed gold regions within 200 kilometres of Kalgoorlie, Western Australia.

Carnavale signed an exclusive and binding option agreement with Western Resources Pty Ltd, to acquire 80% of the high-grade Kookynie Gold Project, which is around 60 kilometres south of Leonora and 150 kilometres north of Kalgoorlie in the Yilgarn Craton.

Subsequently, the company also signed an exclusive and binding option agreement with Western Resources to acquire 80% of the Ora Banda South Project which covers about 25 square kilometres and is also in the Yilgarn Craton.

The project is surrounded by the gold mines of Ora Banda, Siberia, Bullant, Mt Pleasant, Cashmans and Lady Bountiful that have produced more than 6 million ounces, and all within 15 kilometres.

Kookynie exploration

Carnavale has planned a program of detailed, targeted exploration in the first phase of work programs at the Kookynie project.

The planned program includes systematic soil sampling, a detailed aeromagnetic survey over the whole tenement package and an estimated 6,000-metre aircore drilling program, targeting structurally hosted high-grade gold mineralisation.

The program of soil sampling will cover five target areas, where the transported cover is not well developed.

Carnavale will also fly a detailed aeromagnetic survey over the project to identify discrete structural targets that have the potential to host significant high-grade gold mineralisation.

It is anticipated that the company will complete the survey this month.

Ora Banda South Project

Carnavale plans to start a targeted and systematic exploration of the Ora Banda South tenements utilising modern exploration techniques such as Ultra Fine Fraction (UFF) soil sampling and shallow aircore drilling.

The company is also reviewing the existing and publicly available geophysical aeromagnetic surveys to define stratigraphic and structural target zones that have the potential to host gold mineralisation.

A comprehensive and project-wide review to validate and extend known gold occurrences in drilling and soil zones and define new targets.

An aircore drilling program will also be planned to target bedrock gold mineralisation and extend mineralisation in the southern tenement target areas.

Subject to additional results, RC and diamond drill testing will be carried out to test for the primary source of the regolith gold anomalies.

Grey Dam and Mt Alexander projects

The company is continuing nickel sulphide exploration at the Grey Dam Nickel-Cobalt-Copper Project and Mt Alexander Nickel Project.

Reverse circulation and diamond drilling activities targeting EM targets have been completed at Grey Dam utilising a truck-mounted multi-purpose drilling rig from Seismic Drilling Services.

The drilling program targeted shallow EM conductors prospective for nickel sulphide with results pending and once results are analysed the company may engage contractors to survey the drill holes with downhole EM equipment.

Additional soil sampling is also planned and the company will follow-up on the newly defined UFF soil targets in November 2020 with ground electromagnetic (EM) surveys aiming to define direct drilling targets.

The EM surveys will be targeting nickel-copper-cobalt-platinum sulphide-rich mineralisation similar to the Cathedrals trend immediately to the north.

At Mt Alexander, Carnavale received positive results from the UFF program completed earlier in the year.

Analysis and interpretation of the geochemistry results has identified multiple anomalies with extensive strike length, that are prospective for nickel sulphides.

Corporate

During the quarter, the company paid an option fee of $100,000 cash and issued 37.5 million ordinary shares to Western Resources Pty Ltd for the Kookynie acquisition.

In September 2020, the company issued 33 million shares to Klaus Eckhof arising from the conversion of 33 million performance rights, approved by shareholders at the 2019 annual general meeting.

As of September 30, 2020, the company had a cash position of $3.6 million.

New opportunities

The company will continue to assess new opportunities for high demand metals, such as gold, tin, copper, nickel and cobalt, to supply the increasing demand for technology metals consumed in the rapidly growing batteries, electric motors and electronics industry.

Quick facts: Carnavale Resources Ltd

Price: 0.007 AUD

ASX:CAV
Market: ASX
Market Cap: $14.3 m
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