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DIGGERS & DEALERS PREVIEW REFINING THE GOLD STANDARD abcrefinery.com

“The results have increased by an order of magnitude for A swift decision on Kookynie’s future fits in with Carnavale’s
each programme,” he said. overall strategy of finding assets capable of being tested
The Phase 3 programme delivered hits of 2m @ 16.25 g/t, quickly. As well as Hale as chief executive, the company
2m @ 3.11 g/t and 2m @ 3.4 g/t from the McTavish East boasts high-powered exploration success in director Andy
prospect and 2m @ 3.43 g/t, 1m @ 4.54 g/t and 4m @ 3.24 Beckwith and exploration consultant Allan Kneeshaw, both
g/t from McTavish North. of whom have been integral to the De Grey Mining Ltd story
(see page 15).
With the Phase 3 programme completed in late June, Hale
said the company was preparing to make a decision on the “We have never changed strategic direction since listing in
option in July. 2007, even though we have changed project direction on
several occasions,” Hale said. “We find projects that can
“If the final results are positive, we will exercise our option
add value for shareholders in commodities which can be
and move on to RC drilling. If not, we can move on to other
financed and of a scale that the company can develop itself.
opportunities.”
If a project isn’t turning up exploration success, we will get
Hale admitted the project’s fate could be decided by Genesis’
another and we try to improve that selection process each
evolution.
time.
“Kookynie has a measured outcome for Carnavale, it could
“The team continues to evaluate opportunities using
easily host a 300,000oz @ 15 g/t deposit in the mould of
exploration models we believe in – De Grey and Chalice
the historical mines in the area,” he said. “These high-grade
[Mining Ltd] are proof of how that can work. With Kookynie,
underground deposits are truckable over fair distances – look
we took the opportunity to have a look at something different,
at Ramelius [Resources Ltd] – and Genesis are doing a good
an area that has been ignored.”
job of proving the economics can work at Ulysses. Genesis
If Kookynie represents an opportunity to get quick runs on
is at 1.6 moz gold; if they can add a further 500,000oz that
the board, Carnavale’s Barrucuda project could be more
will change the economics of the project completely.
about building an innings.
“It means if we could get a small project together there is
opportunity to get into production reasonably quickly.”

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