05/10/2020 - 15:54

Carnavale boosts gold portfolio

05/10/2020 - 15:54

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Carnavale Resources has secured the option to explore a gold project near Kalgoorlie after signing an agreement with the asset’s private owner.

Carnavale boosts gold portfolio
Carnavale has secured a 24-month option to explore a gold project near Kalgoorlie. Photo: Carnavale Resources

Carnavale Resources has secured the option to explore a gold project near Kalgoorlie after signing an agreement with the asset’s private owner.

The deal is for an 80 per cent-stake (or about 25 square kilometres) in Western Resources’ Ora Banda South project, in the Yilgarn Craton.

Carnavale said the tenement package remained largely unexplored, despite being surrounded by numerous significant goldmines.

The company says Ora Banda South has a similar geological setting to Gold Fields’ St Ives deposit, which hosts more than 2 million ounces of gold.

Carnavale has planned a targeted and systematic exploration program for the current quarter, using the company’s existing cash reserves of about $3.5 million.

Chairman Ron Gajewski said the company's strategy was to acquire and explore gold projects with resources potential similar to its Kookynie gold project, and Grey Dam and Mt Alexander nickel projects.

Carnavale – under the 24-month option agreement – will pay an option fee of $75,000 in cash to Western Resources, as well as issue 10 million Carnavale shares.

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