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CARNAVALE RESOURCES LIMITED — Interim / Quarterly Report 2015
Jul 29, 2015
64607_rns_2015-07-29_ab0bcba6-8c61-4ad2-a0ae-fa6d25b80e8a.pdf
Interim / Quarterly Report
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CARNAVALE RESOURCES LIMITED 30 July 2015
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QUARTERLY ACTIVITY REPORT
CARNAVALE RESOURCES
(A.C.N 119 450 243)
ASX Code: CAV Shares: 256.7M Options: 186.2M (Nov 2016 @ $0.03) Perf Shares 42.0M Cash: $1.25M (30 June 2015) M.Cap $7.4M (@ $0.029)
Directors
Ron Gajewski (Chairman) Andrew Beckwith (MD)
Rhett Brans (NED)
Andrew Chapman (NED)
Carnavale Resources Limited is an exploration and development company based in Perth, Western Australia.
Carnavale has two highly prospective gold-silver-copper projects in Arizona and Nevada, USA.
Office
Level 1, Suite 5 The Business Centre 55 Salvado Rd. Subiaco, WA 6008
For the period ended 30 June 2015
Carnavale Resources Limited (“CAV” or “the Company”) is pleased to report on exploration activities completed during and subsequent to the period on its Red Hills and Little Butte projects located in eastern Nevada and western Arizona USA, respectively.
Red Hills
- Maiden 1,200m diamond drilling programme to test two high grade polymetallic Au-Ag-Cu-Pb-Zn targets at Cobra and Rattler commenced in late July 2015.
Cobra Target
- Underground sampling of historic adit and stopes defines high grade mineralisation up to 9m wide, associated with strong shearing and breccia zones within the Cobra Thrust Fault.
Average Grade of Breccia Zone
| Average Grade of Breccia Zone | Average Grade of Breccia Zone | Average Grade of Breccia Zone | Average Grade of Breccia Zone | Average Grade of Breccia Zone | Average Grade of Breccia Zone |
|---|---|---|---|---|---|
| Aug/t Ag g/t Cu % Pb % Zn % AuEq g/t* |
|||||
| 0.97 | 726 | 1.6 | 4.0 | 4.8 | 17.56 |
| Average Grade of Cobra Thrust Fault | |||||
| 0.67 | 494 | 1.1 | 3.6 | 3.4 | 12.46 |
Rattler Target
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Similar structurally controlled polymetallic Au-Ag-Cu-PbZn mineralisation.
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Larger underground workings previously mined over 50m vertical distance. Limited underground access due to collapsed stopes.
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Surface sampling indicates potential for mineralised shear zone 8m wide and potentially up to 20 m wide.
Little Butte
Post
PO Box 131 Subiaco, WA 6008
Contact Details
Ph +61 8 9380 9098 Fax +61 8 9380 6761 [email protected]
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Large chargeable potential “porphyry style” body define at depth below previous shallow supergene gold and copper plume.
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Chargeable body is interpreted to be fault bounded, over 800m wide and extend beyond the survey limits of 800m along strike.
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CARNAVALE RESOURCES LIMITED 30 July 2015
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RED HILLS PROJECT, NEVADA
(Joint Venture rights to earn up to 75%)
The Company completed a programme of geological mapping and sampling (201 samples) over two larger underground workings at Cobra and Rattler and two smaller workings at the Tiger prospect.
Mapping at each of the workings significantly improved the geological understanding at each prospect and supports the Company’s new geological and structural model and the potential exploration targets at Cobra and Rattler.
Diamond drilling commenced in late July 2015 and is expected to continue until early September. Results will be progressively released during the programme.
Cobra Workings
At Cobra, the mapping and sampling programme was highly successful in improving our 3D geological control on mineralisation and in defining high grade polymetallic Cu-Au-Ag-Zn-Pb mineralisation hosted in the prospective Cobra Thrust Fault (refer to ASX release dated 20 May 2015).
In the workings, the thrust fault has been partially mined along approximately 85 metres of the adit, in a continuous series of 45-55 degree dipping stopes. Mining has also occurred on at least one lower level immediately beneath the mapped adit level.
Geologically, the Cobra Thrust Fault has a strongly sheared upper margin at the base of the altered dolomite, then quickly grades into a massive breccia in the main stope areas. The breccia and upper sheared margin have been mined over a maximum thickness of approximately 9m in the stopes inspected. The base of the breccia and the lower contact of the thrust has not been observed to date adding to a greater potential thickness. The hanging wall altered dolomite is not mineralised except at the margin with the shearing.
The previously reported surface channel sampling on outcrop near the adit entrance corresponds to the upper sheared margin where results of 3.0m+ @ 1.5% Cu, 0.6g/t Au, 317g/t Ag, 9.9% Zn, 4.0% Pb (14.7g/t AuEq*) is of similar high grade nature to the samples from the underground sampling (refer to Table 1 below).
Table 1 highlights 36 individual samples taken specifically within the Cobra Thrust Fault and subdivided into the sheared margin and the internal breccia. In total 124 samples were taken from the Cobra workings with the remaining samples taken within the altered dolomite which is not considered to host any significant mineralisation except at the sheared margin.
Selected photographs of the underground sampling and rock types are provided below. The sheared margin is shown in Photos 1-3 and the breccia zone in Photos 4-5)
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Table 1 Summary of Cobra Thrust Fault sample results
| Table 1 Summary of Cobra Thrust Fault sample results |
Table 1 Summary of Cobra Thrust Fault sample results |
Table 1 Summary of Cobra Thrust Fault sample results |
Table 1 Summary of Cobra Thrust Fault sample results |
Table 1 Summary of Cobra Thrust Fault sample results |
Table 1 Summary of Cobra Thrust Fault sample results |
Table 1 Summary of Cobra Thrust Fault sample results |
|---|---|---|---|---|---|---|
| SHEARED MARGIN | ||||||
| Sample | Aug/t | Ag g/t | Cu % | Pb % | Zn % | AuEq g/t |
| 15RH005 | 0.65 | 217 | 0.2 | 4.3 | 0.6 | 6.25 |
| 15RH006 | 0.32 | 180 | 0.4 | 2.6 | 0.7 | 4.97 |
| 15RH007 | 0.22 | 38 | 0.2 | 0.5 | 1.1 | 1.83 |
| 15RH008 | 0.24 | 625 | 0.1 | 13.4 | 0.1 | 15.40 |
| 15RH009 | 0.09 | 104 | 0.0 | 2.5 | 0.1 | 2.79 |
| 15RH010 | 0.28 | 246 | 0.0 | 2.4 | 0.1 | 4.75 |
| 15RH011 | 0.21 | 1030 | 0.0 | 4.5 | 0.2 | 16.02 |
| 15RH012 | 0.07 | 18 | 0.1 | 1.5 | 0.7 | 1.58 |
| 15RH013 | 0.06 | 22 | 0.1 | 1.4 | 6.3 | 4.95 |
| 15RH015 | 0.51 | 183 | 1.0 | 3.0 | 1.4 | 6.68 |
| 15RH016 | 0.65 | 381 | 2.8 | 2.8 | 0.6 | 11.42 |
| 15RH017 | 0.37 | 89 | 0.4 | 1.0 | 0.2 | 2.68 |
| 15RH018 | 0.14 | 51 | 0.2 | 0.8 | 0.2 | 1.58 |
| 15RH019 | 0.33 | 184 | 0.8 | 3.6 | 1.0 | 6.31 |
| 15RH020 | 0.18 | 1040 | 2.4 | 2.1 | 6.4 | 21.94 |
| 15RH025 | 0.26 | 85 | 1.2 | 4.6 | 4.4 | 8.01 |
| 15RH026 | 0.13 | 371 | 1.1 | 3.5 | 6.4 | 12.01 |
| 15RH056 | 0.11 | 78 | 0.7 | 1.5 | 3.2 | 4.73 |
| 15RH068 | 0.34 | 334 | 0.0 | 4.8 | 1.2 | 7.92 |
| 15RH073 | 1.59 | 216 | 0.2 | 7.2 | 4.0 | 10.63 |
| 15RH074 | 0.28 | 31 | 0.0 | 1.4 | 1.9 | 2.59 |
| 15RH075 | 1.03 | 149 | 0.2 | 3.4 | 9.4 | 10.49 |
| 15RH083 | 0.53 | 197 | 0.0 | 2.6 | 3.7 | 6.66 |
| 15RH084 | 0.64 | 386 | 0.1 | 8.1 | 2.2 | 11.16 |
| 15RH115 | 0.92 | 423 | 1.5 | 1.1 | 2.7 | 10.58 |
| 15RH117 | 0.00 | 20 | 0.0 | 0.1 | 0.7 | 0.75 |
| 15RH118 | 0.18 | 116 | 0.6 | 0.7 | 0.5 | 3.19 |
| 15RH122 | 0.45 | 652 | 0.2 | 8.9 | 0.3 | 13.90 |
| 15RH123 | 0.25 | 265 | 1.5 | 1.5 | 0.5 | 6.86 |
| 15RH124 | 0.17 | 115 | 0.1 | 0.5 | 0.6 | 2.38 |
| 0.37 | 262 | 0.5 | 3.2 | 2.0 | 7.37 | |
| Aug/t | Ag g/t | Cu % | Pb % | Zn % | AuEq g/t | |
| BRECCIA | ||||||
| Sample | Aug/t | Ag g/t | Cu % | Pb % | Zn % | AuEq g/t |
| 15RH110 | 0.68 | 265 | 0.6 | 4.4 | 13.1 | 14.96 |
| 15RH111 | 0.21 | 180 | 2.2 | 3.9 | 4.1 | 9.98 |
| 15RH112 | 1.42 | 379 | 2.7 | 3.0 | 1.3 | 12.43 |
| 15RH113 | 0.10 | 550 | 1.8 | 0.7 | 1.8 | 11.30 |
| 15RH114 | 1.79 | 850 | 1.5 | 4.8 | 4.0 | 19.77 |
| 15RH116 | 1.61 | 2130 | 1.0 | 7.1 | 4.4 | 36.91 |
| 0.97 | 726 | 1.6 | 4.0 | 4.8 | 17.56 |
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AVERAGE GRADE of Shear and Breccia Zones
| AVERAGE GRADE of Shear and Breccia Zones | AVERAGE GRADE of Shear and Breccia Zones | AVERAGE GRADE of Shear and Breccia Zones | AVERAGE GRADE of Shear and Breccia Zones | AVERAGE GRADE of Shear and Breccia Zones | AVERAGE GRADE of Shear and Breccia Zones | AVERAGE GRADE of Shear and Breccia Zones |
|---|---|---|---|---|---|---|
| 0.67 | 494 | 1.1 | 3.6 | 3.4 | 12.46 | |
| Aug/t | Ag g/t | Cu % | Pb % | Zn % | AuEq g/t |
The sheared margin has a variable thickness but generally ranges in the 1-3m range then quickly grades into a relatively massive internal dolomite rich breccia where copper oxide minerals (malachite and azurite) are more common. The breccia zone (Photos 4 and 5) shows a maximum thickness of approximately 6m in the largest of the accessible stopes. The base of the breccia has not been observed however it is anticipated it will grade into another sheared lower margin with the underlying footwall rock units similar to the upper contact.
Importantly, the lower footwall contact of the overall Cobra Thrust Fault has not been observed in either surface outcrop or in the workings and therefore the potential maximum true thickness cannot yet be determined, however is expected to be greater than 9m based on the underground mapping.
Mapping in the vicinity of the adit also suggests additional layer parallel mineralisation occurs in the footwall sediments. The observed mineralisation occurs in a series of small historic workings and shows relatively narrow (<2m) zones of mineralisation however it provides added potential in the longer term.
Three diamond holes to test Cobra Thrust Fault
At Cobra three diamond drill holes are planned to test the for depth extensions immediately down dip from the recently reported high grade poly-metallic shear and breccia hosted Au-Ag-Cu-Pb-Zn mineralisation sampled in the historic underground stopes (Figure 1). This mineralisation is mapped up to 9m thick in the Cobra Thrust Fault target zone.
Figure 1 Schematic Cobra Drill Section showing targets down dip of the high grade underground sampling. Proposed drill holes shown in blue
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Photo 1 Cobra Thrust Fault Upper sheared margin (yellow stained rocks near top of photograph) and main breccia zone below (reddish rocks).
Note the collapsed stope in right hand background. Photo 2 Cobra Thrust Fault Upper sheared and highly deformed margin Sample taken over 0.5m length with limonite and goethite development interpreted to represent oxidised sulphides. 0.45g/t Au, 652g/t Ag, 0.2% Cu, 8.9% Pb, 0.3% Zn (13.9g/t AuEq) Photo 3 Cobra Thrust Fault Upper sheared margin into breccia at base of photo. Sample taken over 1m length perpendicular to the sheared rocks, copper oxides noted in sample. 0.92g/t Au, 423g/t Ag, 1.5% Cu, 1.1% Pb, 2.7% Zn (10.58g/t AuEq)
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Photo 4 Cobra Thrust Fault
High grade breccia mineralisation beneath sheared margin Sample taken over 1m length, copper oxides noted in sample. 1.42g/t Au, 379t Ag, 2.7% Cu, 3.0% Pb, 1.3% Zn (12.43g/t AuEq) Photo 5 Cobra Thrust Fault High grade breccia mineralisation Sample taken over 1.5m length, copper oxides noted in sample. 0.10g/t Au, 550t Ag, 1.8% Cu, 0.7% Pb, 1.8% Zn (11.30g/t AuEq)
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Rattler Workings
At Rattler, the mapping and sampling programme (37 samples) was successful in greatly improving the 3D geological control on mineralisation and confirming the polymetallic nature (CuAu-Ag-Zn-Pb) of the mineralisation hosted in the prospective Rattler Thrust Fault.
The main drive is approximately 60m long and has collapsed in the area of major stoping at the southern end. A large stope, apparently also used as an ore pass from the above workings, occurs towards the southern end of the current drive. This stope is approximately 10m wide and is the largest in any of the historic workings inspected to date. Unfortunately this stope was considered unsafe to sample however sampling on the margins of the stope in the drive is described below and importantly demonstrates the polymetallic nature of the mineralisation similar to the Cobra mineralisation and includes copper not previously considered a potential ore mineral based on surface sampling.
Sampling along the drive immediately adjacent the main stope shows anomalous to strong CuAu-Ag-Zn-Pb mineralisation as highlighted below. Peak results include 0.44g/t Au, 129g/t Ag, 0.7% Cu, 1.9% Pb and 1.5% Zn.
Two diamond holes to test Rattler Thrust Fault
Two diamond holes, one hole on parallel sections, are planned to test the Rattler Thrust Fault for potential high grade poly metallic mineralisation as shown in the following schematic section (Fig 2).
Table 2 Summary of mineralisation in breccia adjacent main Rattler stope
| BRECCIA | ||||||
| Sample | Aug/t | Ag g/t | Cu % | Pb % | Zn % | AuEq g/t |
| 15RH154 | 0.07 | 7.6 | 0.0 | 0.1 | 0.1 | 0.28 |
| 15RH155 | 0.05 | 19.8 | 0.0 | 0.0 | 0.1 | 0.45 |
| 15RH156 | 0.02 | 10 | 0.0 | 0.1 | 0.1 | 0.24 |
| 15RH157 | 0.12 | 22.2 | 0.1 | 0.2 | 1.5 | 1.55 |
| 15RH158 | 0.30 | 129 | 0.7 | 1.9 | 1.0 | 4.55 |
| 15RH159 | 0.07 | 17.1 | 0.2 | 0.2 | 1.5 | 1.48 |
| 15RH160 | 0.07 | 13.8 | 0.0 | 0.2 | 0.8 | 0.81 |
| 15RH161 | 0.44 | 28.3 | 0.1 | 1.7 | 1.2 | 2.49 |
Photo 6 Rattler Thrust Fault
Visible copper mineralisation in breccia (malachite – green mineral in lower portion of photo)
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Figure 2 Schematic Rattler Drill Section showing target down dip of the extensive underground workings and high grade sampling at surface. Proposed drill hole shown in blue with a parallel section to be drilled for the second hole.
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Tiger Workings
Two smaller workings were inspected, mapped and sampled (40 samples) at the Tiger prospect area. The geology of these workings consisted of massive limestone breccia with narrow subvertical structures controlling the orientation of the workings and mineralisation. The dominant structures are orientated north-south with secondary linking structures orientated at 256 to 274°.
The entire 40 samples set shows elevated silver results ranging from 1.3g/t to a maximum of 33.3g/t and an overall average of 6.5g/t Ag. Only one sample has elevated copper to 0.2% Cu, 5 samples with elevated Pb over 0.1% to a peak of 0.24% Pb and 9 samples above 0.1% Zn to a peak of 1.1% Zn.
Further assessment of this area is required to fully understand the potential of this area as a number of other workings not sampled in this programme show a different style of mineralisation in a “pyrite rich matrix supported breccia”.
LITTLE BUTTE PROJECT, ARIZONA
(Option to earn 100%, subject to a royalty)
Railway Prospect
At the Railway Prospect, previous exploration activities have concentrated on assessment of the large near surface “supergene” gold and copper mineralisation.
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During the period, the company completed a broader and deeper penetrating dipole-dipole IP geophysical survey (DDIP) over the prospect area to determine potential for a deeper bedrock source to the extensive secondary gold and copper mineralisation seen in the highly weathered rocks near surface.
Assessment of the current data suggests all the existing drilling has only tested the near surface secondary supergene style of mineralisation within the younger Tertiary sediment package totally within the deeply weathered profile. Most of the known gold and copper mineralisation occurs associated with extensive iron rich and strongly weathered siltstones, sandstones and hematite rich breccias with minor quartz-hematite-chlorite veining. The previous gradient array IP (GAIP) data, which only penetrates to approximatley 200 vertical metres, suggests a series of north - south trending chargeabilty and resistivity features which correlate moderately with the main supergene plume of copper and gold mineralisation. Early diamond drilling suggests the limited quartz-hematite-chlorite veining seen is dominantly subvertical in nature and mapping suggests a potential north - west orientation which is not seen in the GAIP data. Previous mapping of the project area indicates the younger sediments disconformably overlies older crystalline to gneissic granitic basement outcropping to the east within the project area. All of the existing drilling at the Railway Prospect has only intersected the younger sediments above the nonconformity.
Based on the fact there is a substantial flat lying body of secondary remobilised gold and copper mineralisation near surface in the highly weathered younger sediments and a potential subvertical control to the primary mineralisation evident in the veining together with a series of north - south trending potential structural features in the earlier GAIP, the Company commissioned a deeper penetrating DDIP survey to determine potential for deeper controlling features and additional sources for the gold and copper mineralisation.
The DDIP survey comprised of 4 east-west orientated IP lines using a 200m spaced dipole dipole configuration for 12.8 line kilometres with resultant good quality date obtained. Recently completed preliminary inversion modelling has been undertaken to assess the potential for north - south controlling structures and any relationships to potential sources of mineralisation.
The modelling indicates the depth of penetration was significantly deeper at around 700-800m below surface. The modelling also indicates a shallow west dipping sediment basement interface at approximately 200-350m depth, with a series of north -south trending faults which down fault the sediments to the west.
Fig 3 – Plan view of Dipole Dipole IP survey showing the four IP lines and three interpreted north south to north east trending faults.
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Fig 4 Cross Section view of “resistivity” Dipole Dipole IP survey showing the shallow displaced west dipping sediment granite contact, down faulted to the west. (looking north)
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Significantly the DDIP survey shows the older granitic basement is generally non resistive and non chargeable, however it has also defined a large chargeable body at depth below the current known gold and copper mineralisation. This “chargeable” “body is approximatley 800m wide, fault bounded by the Railway and East faults and extends beyond the survey limits (~1000m along strike) and remains open.
Fig 5 Cross Section view of “chargeablity” Dipole Dipole IP survey showing the displaced west dipping sediment granite contact, down faulted to the west. (looking north)
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CARNAVALE RESOURCES LIMITED
30 July 2015
Fig 6 Cross Section view showing potential chargeable younger intrusive body – potential mineralised porphyry intrusion, possibly related to gold copper mineralisation (looking north)
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Fig 7 Rotated plan view showing “chargeable high” remains open to the north and south beyond the DDIP survey limits
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Importantly, this younger intrusive may represent the source of the gold and copper mineralisation where remobilised Au-Cu mineralised fluids have ‘leaked” along the faults into the sediments above the intrusive system. Deep weathering has then remobilised the gold and copper to create the large supergene plume evident in the previous shallow drilling. Accordingly, this deeper intrusive target may represent a potential gold - copper bearing porphyry target.
Further ongoing assessment of this target and drilling data is currently underway prior to designing additional programmes.
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CARNAVALE RESOURCES LIMITED 30 July 2015
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PROPOSED EXPLORATION ACTIVITIES
Exploration activities for the September 2015 quarter will focus on the diamond drilling programme to test the Rattler and Cobra mineralised systems and fully assess the Little Butte DDIP survey and future programme design.
Diamond drilling commenced at Red Hills in late July 2015 and is expected to continue through to early September 2015.
CORPORATE
At 30 June 2015, the Company’s cash position was $1.25M, with no debt.
During the quarter, the Company issued 32.5 million shares at an issue price of 2 cents per share, together with 20.25 million attaching options (exercisable at 3 cents on or before 30 November 2016) to raise $650,000.
The monies raised are to provide funding for the Company’s Phase 1 diamond drilling programme at the Cobra and Rattler prospects, Red Hills Project.
On 20 July 2015, Mr. Klaus Eckhof resigned from the Board of Carnavale, due to time commitments in his executive roles in several African listed ASX companies. The Board of Carnavale thanks Mr Eckhof for his significant contribution throughout his long tenure on the Board.
For further information contact:
Andrew Beckwith Peter Taylor Managing Director Investor Relations Carnavale Resources Ltd NWR Communications P: 08 9380 9098 P: +61 (0)412 036 231
The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by Mr Andrew Beckwith, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Beckwith is a Director of Carnavale Resources Limited. Mr Beckwith has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr Beckwith consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
* Gold Equivalence (AuEq) calculation represents total metal value for each metal, assuming 100% recovery, summed and expressed in equivalent gold grade or ounces. The metal prices used in the calculation being US$1100/oz Au, US$5000/t Cu, US$15/oz Ag, US$2100/t Zn and US$1800/t Pb
The Gold Equivalent Formula is
AuEq(g/t) = Au(g/t) + 1.41Cu(%) + 0.013Ag(g/t) + 0.59Zn(%) + 0.51Pb(%) (Rounding errors may occur.)
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Appendix 1
Carnavale Resources Limited (ASX:CAV) provides the following addendum to the June 2015 Quarterly Activities Report lodged with the ASX on 30 July 2015 in relation to additional information required by Listing Rule 5.3.3.
Schedule of Mining Tenements, Beneficial Interests and agreements
Held as at the end of the June 2015 Quarter
| Project/Location | Country | Tenement | Percentage held/earning |
|---|---|---|---|
| Red 4,6,8,10,12,14, | |||
| Red Hills Project – Nevada | USA | 16,18, 20-48,50-65,74- | 0% held 1 |
| 82,86-91,95-124 |
1 Carnavale, through 100% owned subsidiary Tojo Minerals Pty Ltd (Tojo), holds joint venture earn-in rights with Columbus Gold Corporation whereby Tojo has the right to initially earn 51% of the project tenements via expenditure of US$2M over a period of three years from the execution date of 15 August 2013. Tojo has the additional right to elect to earn an additional 24% (total of 75%) via additional expenditure of US$7M over a further period of 4 years from this election. Expenditure thereafter is on a pro rata basis with dilution clauses standard in this type of agreement. The project has an underlying 2% Net Smelter Royalty (NSR) to a third party. The agreement has the right for Tojo to purchase 1% of the third party NSR for US$2M.
| Project/Location | Country | Tenement | Percentage held/earning |
|---|---|---|---|
| Ben 1-9, 10A,11-98, | |||
| Loma 2,4,5,7,9-12, | |||
| Locher Ent. 1-4, | |||
| Smoke Hole 3-5,8,11, | |||
| Little Butte Ext 2-4, | |||
| Little Butte Project - Arizona | USA | Dollie W, Jaguar, |
0% held 2 |
| Paradise #2, | |||
| Paradise, | |||
| Paradise #1, | |||
| Paradise Extension, | |||
| Llano |
2 Carnavale, through 100% owned subsidiary Tojo Minerals Pty Ltd (Tojo), holds a Property Option Agreement with MinQuest Inc, whereby Tojo has the right to earn 100% of the project tenements via expenditure of US$6M over a period of ten years from the execution date of 31 July 2013, subject to a retained 3% Net Smelter Royalty (NSR) by MinQuest.
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Appendix 5B Mining exploration entity quarterly report
Appendix 5B
Mining exploration entity quarterly report
Name of entity
| Name of entity | Name of entity | Name of entity | Name of entity |
|---|---|---|---|
| CARNAVALE RESOURCES LIMITED | |||
| ABN 49 119 450 243 Consolidated statement of cash flows |
Quarter ended (“current quarter”) | ||
| 30 June 2015 | |||
| Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – Environmental Bond NetOperating Cash Flows |
Current quarter $A’000 |
Year to date (12 months) $A’000 |
|
| - (191) - - (165) - 4 - - (21) |
- (1,020) - - (516) - 32 - - (21) |
||
| (373) | (1,525) | ||
| Cash flows related to investing activities 1.8 Payment for purchase or renewal of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other – opening cash on acquisition of Tojo Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) |
- - - - - - - - - |
- - - - - - - - 98 |
|
| - | 98 | ||
| (373) | (1,427) |
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Appendix 5B Mining exploration entity quarterly report
| 1.13 Total operating and investing cash flows (brought forward) |
(373) | (1,427) |
|---|---|---|
| Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – share issue expenses Net financing cash flows |
650 - - - - (26) |
1,170 - - - - (46) |
| 624 | 1,124 | |
| Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter |
251 995 7 |
(303) 1,528 28 |
| 1,253 | 1,253 |
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
| 1.23 1.24 |
Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10 |
Current quarter $A'000 |
|---|---|---|
| 128 | ||
| - | ||
| 1.25 | Explanation necessaryfor an understandingof the transactions | |
| A$’000 Directors fees, consultancy charges and remuneration 91 Accounting ,occupancy,secretarial and legal expenses 37 |
Non-cash financing and investing activities
-
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A.
-
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
N/A
Financing facilities available
Add notes as necessary for an understanding of the position.
| 3.1 Loan facilities 3.2 Credit standby arrangements |
Amount available $A’000 |
Amount used $A’000 |
|---|---|---|
| - | - | |
| - | - |
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Appendix 5B Mining exploration entity quarterly report
Estimated cash outflows for next quarter
| Estimated cash outflows for next quarter | |
|---|---|
| 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration |
$A’000 |
| 300 | |
| - | |
| - | |
| 120 | |
| Total | 420 |
Reconciliation of cash
| Reconciliation of cash | ||
|---|---|---|
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter $A’000 |
Previous quarter $A’000 |
| 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) |
1,253 | 495 |
| - | 500 | |
| - | - | |
| - | - | |
| Total: cash at end of quarter(item 1.22) | 1,253 | 995 |
Changes in interests in mining tenements
| 6.1 Interests in mining tenements relinquished, reduced or lapsed * 6.2 Interests in mining tenements acquired or increased |
Tenement reference | Nature of interest | Interest at beginning ofquarter |
Interest at end of quarter |
|---|---|---|---|---|
| - | - | |||
| - | - |
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Appendix 5B Mining exploration entity quarterly report
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
| Total number | Number quoted | Issue price per security (cents) |
Amount paid up per security (cents) |
|
|---|---|---|---|---|
| 7.1 Preference +securities (description) 7.2 Changes during quarter |
- | - | - | - |
| - | - | - | - | |
| 7.3 +Ordinary securities 7.4 Changes during quarter Placement |
256,285,348 | 256,285,348 | ||
| 32,500,000 | 32,500,000 | 2 cents | - | |
| 7.5 +Convertible debt securities (description) 7.6 Changes during quarter |
- | - | - | - |
| - | - | - | - | |
| 7.7 Options and Performance Rights (description and conversion factor) Unlisted options 7.8 Issued during quarter Placement Options issued to Consultants 7.9 Exercised during quarter 7.10 Cancelled/Expired during quarter |
186,708,836 | - | Exercise price 3 cents |
Expiry date 30 Nov 2016 |
| 16,250,000 4,000,000 |
- - |
3 cents 3 cents |
30 Nov 2016 30 Nov 2016 |
|
| - | - | - | - | |
| - | - | - | - | |
| 7.11 Debentures (totals only) |
- | - | ||
| 7.12 Unsecured notes (totals only) |
- | - | ||
| 7.13 +Performance Shares A Class Performance Shares B Class Performance Shares 7.14 Changes during quarter |
21,000,000 21,000,000 |
- - |
- - |
13 Mar 2018 13 Mar 2019 |
Please see next page for conversion terms of Performance Shares
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Appendix 5B Mining exploration entity quarterly report
Conversion terms of Performance Shares
21M B Class Convertible Performance Shares have the right to convert to 21M Shares upon the successful completion of a JORC Code compliant indicated mineral resource of not less than 500,000 ounces of gold or gold equivalent at greater than or equal to 0.8g/tonne gold or gold equivalent in respect of the Little Butte Project or if a decision to mine is made based on a preliminary feasibility study on the Little Butte Project within 3 years from the date of issue of the Performance Shares.
21M B Class Convertible Performance Shares have the right to convert to 21M Shares upon the successful completion of a JORC Code compliant indicated mineral resource of not less than 500,000 ounces of gold or gold equivalent at greater than or equal to 0.8g/tonne gold or gold equivalent in respect of the Red Hills Project or if a decision to mine is made based on a preliminary feasibility study on the Red Hills Project within 4 years from the date of issue of the Performance Shares.
Compliance statement
-
1 This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
-
2 This statement gives a true and fair view of the matters disclosed.
==> picture [91 x 49] intentionally omitted <==
Sign here: Date: 30 July 2015 Print name: Paul Jurman Company Secretary
Notes
1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
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