Materials

Carnavale Resources hits gold at two separate WA projects

Mon 25 Jul 22, 12:43pm (AEST)
A representation of gold mineralisation in-situ
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Key Points

  • Carnavale is confirming gold hits at the Kookynie and Ora Banda gold projects, both in WA
  • Diamond drilling remains ongoing at Kookynie with results on horizon
  • Upgraded aircore drilling plan to launch at Ora Banda by September

Microcap Carnavale Resources (ASX:CAV) has hit gold during initial exploration drilling at two separate projects in WA.

The Kookynie project boasts unusually high grades; and mid-grade gold has been found at the Ora Banda South project. 

Today’s results are based on data received for RC drilling at Kookynie and aircore drilling at Ora Banda.

What has Carnavale found at its projects?

The company is reporting the following gold drilling results at Kookynie and Ora Banda. 

Investor information provider Undervalued Equity notes gold grades from 5 grams per tonne (5g/t) are widely considered high grade. 

It’s worth noting absolute consensus on gold grades can be hard to pin down, and by many yardsticks, 4g/t is also considered high grade.

Compare that with the results below: 

Kookynie

  • 16m @ 20.9g/t from 161m depth 

  • 04m @ 17.8g/t from 78m depth 

  • 04m @ 12.9g/t from 126m depth 

  • 04m @ 6.3g/t from 114m depth 

Ora Banda 

  • 04m @ 2.69g/t from 36m depth 

  • 04m @ 2.59g/t from 48m depth 

  • 08m @ 0.58g/t from 32m depth 

 

What comes next? Hopefully less assay delays 

Carnavale continues diamond drilling at Kookynie, with rigs currently targeting areas on-site thought to contain more gold (read: targeting mineral extensions.) 

The rigs will complete a 3 hole program comprising 500m of core. 

The company has not given a timeline for results, and delays at assay laboratories mean investors might not hear much about this until late 2022, but that is only this author’s suggestion. 

Meanwhile, at Ora Banda, the company has its eyes set on the Carnage and Highlander prospects respectively, both on the cards for follow up aircore and RC drilling. 

Carnavale expects this to proceed before September. 

“Carnavale has had an active quarter at Kookynie and Ora Banda,” CEO Humphrey Hale said. 

“Assay turnaround has been an issue, but we hope to see this improve over the coming months.” 

How is Carnavale doing? 

Investors should note that as a junior explorer, Carnavale is not making any money (but this is the case for most junior explorers.) 

In early trades, it appears today’s results have gone largely overlooked. Intraday charts are very still. 

However, the one year returns for Carnavale investors currently sit at 14.29%.

On a one year basis, Carnavale is outperforming the materials sector by 30.62%. 

Can Carnavale get back to par with the materials index? (XMJ)
Can Carnavale get back to par with the materials index? (XMJ)

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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