Kookynie high-grade Gold project

Kookynie hIgh-grade Gold project

 

Carnavale (“Company” )is targetting high grade Gold mineralisation at Kookynie

Carnavale Resources Limited (ASX:CAV) has signed an exclusive and binding Option Agreement with Western Resources Pty Ltd, a West Australian private company, to acquire 80% of the high-grade Kookynie Gold Project (“KGP”, “Project”), located 60km south of Leonora and 150km north of Kalgoorlie in Yilgarn Craton, Western Australia (Figure 1).

The Project covers an area of approximately 21km2, comprising one exploration license E40/355 and 2 prospecting licenses P40/1380 and P40/1381.

 Figure 1 Location of Carnavale’s Kookynie Gold Project

Simplified geology and significant Gold deposits

Kookynie Prospectivity
The Kookynie area has strong gold production history from high-grade quartz vein deposits dating back to the late 19th century. The high-grade quartz vein deposits, found in the area, usually are representative of larger systems comprising numerous individual high-grade lodes.
All the significant historical high-grade lodes mined at Kookynie have been discovered in areas of outcrop that were discovered by prospectors at the turn of the last century. The Project has the benefit of similar geology and structural setting with along strike extension of the mineralised structures. The most significant producing mines are associated with high-grade gold shoots within North-South trending quartz veins interacting with the Puzzle granite (Figure 2).

Figure 2 Map showing Tenement Holdings over geology.
Dark Blue CAV, Red Metalicity, Light Blue Genesis, orange GTi Resources

Figure 3 Kookynie mineralised trends

The geology of the project area is dominated by the Keith/Kilkenny tectonic zone within the north-northwest trending Archaean aged Malcom Greenstone belt which can be seen reaching from Sons of Gwalia in the North through the Kookynie District in the south (Figure 2).
The historic mining together with the recent exploration success of other explorers in the region provide strong support for the prospectivity of the Project. The major structural corridor extends from the Tier 1 Sons of Gwalia gold mine (>8Moz) owned by St Barbara Limited (SBM), through the Greater Ulysses Project (1.3Moz) owned by Genesis Minerals (GMD) and 10km further south to the Kookynie region (>0.65moz production) where NEX Metals, Metalicity and GTI Resources are achieving exploration success.
At Kookynie, historic production has occurred from the historic Cosmopolitan Mine (360,000oz @ 15g/t production) which lies 1km east of the project and the Champion Mine (33,000oz @ 17g/t production), the smaller mines of McTavish, Leipold, Batavia, Altona Diamantia, and Cumberland lie adjacent to the Project (Figure 2 and 3).

The Kookynie Project
The Kookynie Project area is covered with a thin layer of transported material and is under explored with only 2 RC holes and limited wide-spaced RAB / aircore drilling undertaken within the project area. Carnavale is excited by the opportunity of applying modern geochemistry and drilling techniques to this highly prospective area.
There are two types of gold mineralisation associated with the Kookynie area, firstly, high-grade gold is associated with pyritic quartz veins hosted within north to northeast dipping structures crosscutting favourable lithologies also high-grade gold is associated in magnetic, granitic fractions of the granite plutons local to the Kookynie area such as the Puzzle granite that underlies part of the Project.
The Kookynie Project is located in the central portions of the historic mining centre, which has produced over 650,000oz from high-grade gold lodes. Carnavale’s strategy is to explore and define sufficient high-grade gold resources that can be mined and transported to one of the five nearby processing plants.

Exploration Results
Exploration across the Project area is limited to historic prospecting and small-scale mining with limited RAB/aircore drilling on wide spaced lines and only 2 RC holes drilled. The deepest hole is 108m downhole. Historic non JORC compliant drilling details and significant intercepts are listed in Appendix 1 and drill location details in Appendix 2.
Two programs of drilling have been completed on E40/355, one in 2001 by Diamond Ventures NL in JV with Kookynie Resources NL which consisted of 41 aircore holes, plus 4 RAB holes and 2 RC holes. The second, earlier program was in 1997 by Consolidated Gold Ltd which consisted of 85 RAB holes and 50 aircore holes. Five holes were drilled in 2002 by Barminco-Kookynie Resources NL on P40/1380, immediately to the north of the McTavish Prospect

Encouragingly, the shallow reconnaissance drilling within the Project has returned exciting, high-grade gold intersections associated with Cosmopolitan quartz vein style mineralisation at the Project’s Champion South prospect, 2 km south from the historic high-grade Champion mine. (Figure 3).

Gold mineralisation in previous RC and aircore drill intercepts completed by previous explorer Diamond Ventures NL in joint venture with Kookynie Resources NL during the period 2000 to 2001 at the Champion South Prospect include:
1m @ 13.1g/t in DVAC013
3m @ 6.8g/t including 1m @14.0 g/t in DVRC86
7m @1.4g/t in DVAC003 (hole ended in mineralisation)
9m @ 2.0g/t in DVAC019 (hole ended in mineralisation)
42m @ 0.2g/t in DVRB326 (hole ended in mineralisation)
(Refer to WAMEX reports A065275 “Annual Report for the period ending 30th June 2002” by Kookynie Resources NL, 31 August 2002).

Five holes were drilled in 2002 by Barminco-Kookynie Resources NL on P40/1380, immediately to the north of the McTavish Prospect. Significant intercepts include:
5m @ 0.38g/t inc. 1m @ 1.19g/t in BMN001
3m @ 2.35g/t in BMN002.
5m @ 0.35g/t in BMN003
3m @ 0.20g/t in BMN003
13m @ 0.57g/t in BMN003
(Refer to WAMEX reports A66379 “A(nnual Report for the period ending 30th June 2002” by Kookynie Resources NL, 31 August 2002).

In addition, south of Metalicity’s Leipold project, there is a substantial, untested, gold-in soil (max 79ppb) anomaly coincident with north-south trending structures and zones of de-magnetisation interpreted from the aeromagnetic survey, that are highly prospective features for gold (Figure 3). (Refer to WAMEX Report A47330 and A60455).

Previous surface exploration was hampered by a thin layer of recent sheetwash cover. The historic, high-grade gold mines that have been exploited in the area, are all located in sub cropping or outcropping geology. Western Resources Pty Ltd has identified several high priority drill targets from the previous exploration results that Carnavale will assess in detail.
The old workings that are located on P40/1380 and 1381 in the northwest of the Project have not been systematically drill tested, although 5 short RC holes were completed on P40/1380 on the license border with Metalicity Limited’s McTavish prospect. Prospecting by Western Resources Pty Ltd has confirmed the presence of gold mineralisation at these historic workings.. The historic workings represent excellent early stage drill targets.

Six significant NNE-SSW target structures, identified from the aeromagnetic survey, cross the Project that are host to the historic, high-grade gold production in the area, including strike extents of the high-grade Champion and Batavia mines. The extensions of the historic high-grade Cosmopolitan and Altona structures trend into the southern portion of the Project (Figure 3).
The soils anomalies defined by GTi Resources Ltd immediately to the southwest of the tenements supports the previous soil anomalies defined within the Project.


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