Carnavale Resources (ASX: CAV) discusses Kookynie results

Neesha:

Welcome back to Market Index. Today we have Humphrey Hale, CEO of Carnavale Resources, joining us. Welcome, Humphrey.

Humphrey Hale:

Good morning.

Neesha:

For listeners not familiar with Carnavale Resources, can you provide a little background on the company for us?

Humphrey Hale:

Absolutely. The company is an ASX-listed junior resource company, and we are focused on Greenfield-style exploration of nickel and gold in Western Australia.

Neesha:

Wonderful. Thank you. Most recently, the company completed a $2 million capital raise that was oversubscribed. Can you outline for investors how exactly the money will be spent?

Humphrey Hale:

Sure. So at the beginning of February we raised $2.64 million, and that was split between our senior shareholding group and managed by GT Capital, and also topped up by our directors, Ron Gajewski and Andy Beckwith put $200,000 in each, which is a great boost for the company and a real sign that things growing. The money will be spent on developing our existing projects and expanding the high grade zone that we just defined at Kookynie, and further drilling at our developing prospect at Ora Banda. Both of those are gold. In addition, we'll be looking at some of the nickel at our Grey Dam. So that's a [inaudible 00:01:25] nickel deposit.

Neesha:

In late January, you provided an update on drilling at Kookynie that caused the company share price to briefly double. In your opinion, why do you think that announcement had such an impact?

Humphrey Hale:

Well, we did have some spectacular results in that announcement. We produced two ASX releases announcing very high grade results. So our best intercept there at Kookynie and the RC drilling was 16 meters at 21 grams per ton, and that is a truly outstanding result. And we had multiple other ounce type intercepts, and the market rewarded us with a doubling in our share price. So I think that's a pretty good outcome, and we were delighted to see that happen. It's been the culmination of detailed exploration over a number of months that's led to this discovery at Kookynie.

Neesha:

Thank you. And what's the six month pipeline like for Carnavale Resources?

Humphrey Hale:

Well, we've got three main projects that we're working on currently. Kookynie as we talked about, high grade gold with the RC, and we'll be back there in about a month's time to expand that high grade zone, and we've got a corridor that expands up to our other prospect, Champions South, and we'll get an air core rig in there to develop that and hopefully find some more high grade zones beneath the regular.

Humphrey Hale:

So that's coming up in a month's time, but right now we're at Ora Banda and we're drilling 11,000 meters of air core, infilling some of the great hits that we had last year. And so some of those, just for an example, five meters at nearly nine grams. Sorry, four meters at nearly nine grams, four meters at five, and multiple other plus gram hits. So it's pretty exciting, and Ora Banda has a scale that is... It's enormous. It's 50 kilometres long. We're looking for an invincible style model similar to he Gold Fields project at St Ives. And that takes us through the first few months. But in addition, we'll be looking at some of our nickel opportunities at Grey Dam with an EM survey. We've done soil sampling, passive seismic, and well be following that up with EM.

Neesha:

Humphrey, definitely a lot of action there. Thank you so much for joining us on Market Index. We appreciate all of your insights in regards to Carnavale Resources. Any final comments for the market?

Humphrey Hale:

Thanks very much for your time. Well, I think we're on the cusp of some great things. We've got the tiger by the tail at Kookynie, Ora Banda looks great, and who knows what will happen at Grey Dam, but all things are looking very positive at the moment.

Neesha:

Thank you so much. That's Humphrey Hale, the CEO of Carnavale Resources joining us online. Have a lovely day, Humphrey. Thank you.

Humphrey Hale:

Thank you.