05 Oct Carnavale Resources acquires Ora Banda South gold project in Western Australia
ASX-listed Carnavale Resources has signed a 24-month option with Western Resources to acquire 80% of the Ora Banda South Project in the Yilgarn Craton of Western Australia.
This project is located within 15 km of several historic mines – Ora Banda, Siberia, Bullant, Mt Pleasant, Cashmans and Lady Bountiful – that have produced more than 6 million ounces of gold.
Under the terms of the deal, Carnavale must undertake either a surface geochemical programme or drilling programme on two targets prior to April 2021 and the same on a further three targets before June 2022.
Meanwhile, Western Resources would be free carried to bankable feasibility study (BFS) and upon completion of a BFS, would be required to contribute to the ongoing costs on a pro-rata basis or be diluted, or alternatively convert its 20% equity interest to a 1.5% NSR royalty.
Carnavale executive chairman Ron Gajewski said: “Carnavale is delighted to acquire this option to explore the Ora Banda South Project.
“Our geological team interpret the area to be under explored and highly prospective with a geological setting similar to the St Ives Invincible deposit, which hosts over 2 million ounces of gold.
“The existing positive shallow bedrock gold results in the limited historic drilling along the southern portion of the Carnage Shear Zone provides support to our view that this area has the potential to host a significant gold deposit.”