Carnavale Resources Ltd ('Carnavale', 'CAV') is pleased to advise the outcome of the Maiden Mineral Resource Estimate (MRE, Resource) and Scoping Study (Study).

The Study assessed several open pit and underground mining scenarios to develop the Swiftsure deposit within the Kookynie Gold Project 60km south of Leonora, Western Australia, with the most profitable development scenario comprising a compact open pit and underground development.

MRE Highlights: Initial Swiftsure Mineral Resource Estimate of 457kt @ 5.8g/t for 85koz Au confirmed, including the bonanza 'ounce dirt' gold zone containing approx. 53koz @ 31.2g/t Au. The Swiftsure Resource is shallow and high-grade, with 61% in the Indicated category. The Resource only includes drilling at the Swiftsure deposit and remains open at depth and along strike. Recent new discoveries at Tiptoe and Valiant plus other targets provide exciting near-term opportunities to increase the resource at the Kookynie Project.

Scoping Study Highlights The Study highlights robust financials and a competitive cost profile utilising conservative mining parameters and current cost assumptions. Project value has been assessed using a current gold price of A$3,500

Net Present Value (pre-tax NPV8 ) of approximately A$91m with an IRR of 192% Undiscounted Cashflow of approximately A$105m Total pre-production Capital of approximately $3m with maximum drawdown in the order of $12.9m in month 8 of operations. Initial mine life of 32 months with payback of Capital in month 14 of operations. Initial mine production target inc. mine dilution of approx. 421kt @ 4.6g/t for 62koz Au. 93% of the mineral resources extracted during the payback period classified as Indicated from the open pit. Scoping Study total all in cost of approximately A$1,730 per ounce recovered. 56% of production from the Open pit.

Important information - Cautionary Statement - Scoping Study The Scoping Study ('Study') referred to in this announcement has been undertaken to determine the viability of open pit and underground mining at Carnavale Resource's ('Carnavale', 'CAV') Kookynie Gold Project ('Project') in Western Australia with processing undertaken at a third-party toll treatment processing plant. Carnavale engaged independent consultants, Cube Consulting Pty Ltd ('Cube') of West Perth to provide a JORC12 compliant maiden MRE and an evaluation of the economic mining scenarios including open pit and underground mining to a Scoping Study standard. The Study is a preliminary technical and economic assessment of the potential viability of the Project. It is based on low level technical and economic assessments +/-35% accuracy that are not sufficient to support the estimation of ore reserves. Infill drilling, further exploration and evaluation work and appropriate studies are required before Carnavale will be in a position to provide assurance of an economic development case at this stage or to provide certainty that the conclusions of the Study will be realized. The study includes existing JORC 2012 Indicated and Inferred resources defined within the Project with a production target comprising 74% Indicated and 26% Inferred resources over the life of the mine. Investors are cautioned that there is a low level of geological confidence in the Inferred resources and there is no certainty that further drilling will result in the determination of Measured or Indicated resources, or that the production target will be realized. 93% of the mineral resources scheduled for extraction during the 14-month payback period are classified as Indicated. The Inferred Mineral Resource is not the determining factor in determining the viability of the Project. The Study is based upon the material assumptions outlined in this announcement, including assumptions about the availability of funding. Investors should note that there is no certainty that Carnavale will be able to raise the required amount of funding when needed. While Carnavale considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated in the study will be achieved. To achieve the outcomes presented in the preferred mine plan, it is estimated that initial capital of A$3m will be required to establish such things as workshops and a maximum capital requirement of A$12.9m will be required before the project goes cash positive as the pit is developed. There is no certainty that the Company will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company's shares. It is also possible that the Company could pursue other value realization strategies such as sale partial sale or joint venture of the project. If it does, this could materially reduce the Company's proportionate ownership of the Project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Study. Notwithstanding the many components of this study, such as pit shell design, capital costs, mining costs, processing costs and other amounts are more accurate than +/- 35%, Carnavale has concluded that on a reasonable basis for providing the forward looking statements included in this announcement and believes it has a reasonable basis to expect it will be able to complete the development of the Project as outlined in the Study. This announcement has been prepared in compliance with the JORC code 2012 Edition (JORC 2012) and the ASX Listing Rules. All material assumptions on which the forecast financial information has been provided in this announcement are outlined in the attached JORC 2012 table disclosures. Given the uncertainties involved as listed above, investors should not make any investments decisions based solely on the results of the Study.

CEO Humphrey Hale commented: We are delighted to announce the results of the maiden Resource and Scoping Study for the Swiftsure deposit at Kookynie highlighting a very valuable niche project. Swiftsure represents a new discovery in the historic Kookynie mining camp, close to Leonora, and has similar high-grade characteristics of the historic mines 2km to the east such as Cosmopolitan, Diamantia and Altona. Swiftsure is characterized by bonanza grade plunging shoots within a vein structure that has extensive strike extents. The high-grade shoots within Swiftsure contain the fabled 'ounce dirt' or 53koz at 31.2g/t which ensures robust financials for the Project. Carnavale appointed independent consultants Cube Consulting to calculate the maiden MRE and run a number of mining scenarios to establish the best way to develop the Swiftsure project. The Study demonstrates robust economics and provides various pathways to value for Carnavale shareholders. This is just the starting position for the Kookynie Gold Project, as the high-grade shoots that contain 'ounce dirt' remain open at depth and there are multiple additional targets along strike that have the potential to host additional high-grade shoots in fresh rock, at depth. We are excited about the exploration upside to the Kookynie Gold Project.'

Contact:

Tel: (08) 9380 9098

Email: info@carnavaleresources.com

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