CARNAVALE RESOURCES LIMITED - Capital/Financing Update 2020

CARNAVALE RESOURCES LIMITED ASX Release 22 October 2020

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Strategic Acquisition and Intensive Exploration to commence at Kookynie High-Grade Gold Project

Carnavale Resources Ltd (“CAV”, “Carnavale” or the “Company”) is pushing forward with its exploration plans on the Company’s expanded tenement portfolio. The Company has a systematic exploration program planned for the high-grade Kookynie Gold Project that includes:

A detailed, multi-element soil sampling program to test strike extensions of known gold mineralisation including Metalicity Ltd.’s (ASX: MCT) Leipold, McTavish and Cosmopolitan projects, where transported cover is not well developed.
Flying a detailed aeromagnetic survey over the Kookynie project to identify structural targets with potential for gold mineralisation.
POW approved and Drill rig booked for the end of November.
6,000m of aircore planned to test structural, geochemical and aeromagnetic targets.
Acquisition of additional strategic prospective ground to add to the Kookynie Gold project.

It is anticipated that the field work component will be completed prior to Christmas, with results following thereafter.

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Figure1 - Old workings at Kookynie Gold Project

Executive Chairman Ron Gajewski commented:

“Carnavale continues to expand its holdings at the Kookynie Gold project as part of the Company’s strategic exploration plan for the area. We have taken a systematic approach to exploring the ground by analyzing the information available and applying an integrated program of geochemistry, geophysics, and geology.

Carnavale is wasting no time in getting on the ground to search for high grade gold within this very under explored tenement package. The Company is well funded with approximately $3.5 million cash at 30 September 2020 to execute this fast tracked program.”

Carnavale Resources Limited ABN 49 119 450 243 Level 2, Suite 9, 389 Oxford Street, Mt Hawthorn, WA, 6016 T + 61 8 9380 9098 F + 61 8 9380 6761 E: [email protected] W : www.carnavaleresources.com 1

Carnavale Resources Limited (ASX:CAV) is pleased to advise that the Company’s exploration programs are moving forward swiftly, with a program of modern and structured exploration planned for the next quarter at the Kookynie high-grade gold project, which includes the acquisition of new exploration opportunities.

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Figure 2 - Location of Carnavale’s Projects Simplified geology and significant Gold deposits

As part of Carnavale Resources strategic exploration plan at Kookynie, the Company has acquired 100% of tenement application E40/394, which represents 4,500ha of exploration ground, within the prospective Melita formation from prospector Bruce Legendre, who acquired the tenement through the DMIRS ballot process. Competing applicants in the ballot were Metalicity Limited with tenement application E40/395 which has subsequently been withdrawn. (Refer Metalicity Limited ASX release significant and strategic tenement application for the Kookynie Gold Project and update on assays and drone survey dated 22 June 2020 )

E40/394 is located 5km west of the historic Ulysses Mining Camp that is being successfully developed by Genesis Minerals Ltd and 40km south-southwest of Leonora in the Eastern goldfields of Western Australia (Figure 3).

E40/394 is situated within the Melita formation, that is the host sequence to the Ulysses-Orient-Well mining Camp that has produced over 1.5Moz of gold (Figure 3). The tenement has been explored by two phases of recent exploration, one in the 1990’s and the most recent in 2012. This exploration included an extensive soil geochemistry program completed within the tenement and over 10,000m of drilling. Open file data is available from WAMEX reports A062530 and A094841. Carnavale is in the process of reviewing this data to establish a modern exploration plan, targeting Ulysses style gold mineralisation.