caravel quarterly report 30 september 2017 pre-release

QUARTERLY REPORT

CalingiriProject,WATheCompanywaspleasedtoannounce in July2017 thattheMitchellRiver

Group (“MRG”) were appointed to commence a detailed study utilising

cutting-edge ore sorting technology to remove barren material from ore

prior to milling and processing that maymaterially increase ore grade. In

addition, a desktop study completed by MRG indicated that successful

sortingofCalingiriorewouldsignificantlyreduceprojectOpexandCapex.Iftestworkconfirmsthedesktopstudy,theCalingirioregradeisexpectedto

bemateriallybeneficiatedwithsignificantflowthoughimprovementstothe

projecteconomics.

During the quarter, the announced program of works to test the bulk ore

sortingtechnologycontinuedandthestatusisshowninthetablebelow:

Activity Provider 2017ProjectedCompletion

DesktopStudy–high-level

evaluation

MRG Completed

Diamonddrilling

OrbitDrilling Completed

Corecutting,analysisand

physicaltestwork

ALS Completed

Oresortingandassessment MRGandCVV Completed

Additionalanalysisand

testworkonsortedmaterial

ALS October-

November

ResultsandReporting

MRGandCVV November-

December

PrivatePlacementOn7

thJulytheCompanyannouncedthatithadreceivedcommitmentsfrom

investorstoraise$0.8mthroughtheissueof16.0msharesatanissueprice

of$0.05pershareand1freeattachingunlistedoptionforeach2shares

issued,exercisableat$0.075.Tranche1oftheplacementwasclosedon13

Julyandraisedgrossproceedsof$677,700.Tranche2wascompletedon31st

August,andtheCompanyissuedafurther3.2msharesand8.4moptions

exercisableat$0.075onorbefore31August2019.

A total of 16.8m shares and 8.4m attaching optionswere issued for gross

proceedsof$840,000acrossbothTranchesincluding$162,000inTranche2.

QuarterlyActivitiesReportFortheperiodended30September2017

CaravelMinerals Limited (“Caravel”) is an

Australian-based gold, copper and base

metals exploration and resource

development company with projects

located in Western Australia. The

Company is listed on the Australian

Securities Exchange (code: CVV). Caravel

has a technically strong and well

established exploration and mine

development team backed by an

experiencedBoardandpanelofadvisors.

TheCompanyisanemerginggrowthstory

with compelling projects in WA. The

Company’sflagship istheCalingiriCopper

Project, 120km from Perth, with a JORC

Scoping Study that was released in June

2016. The study confirmed Calingiri’s

potential as a low-cost mid-tier copper

producer with low Capex and robust

economics. The second project in WA is

the Bryah Project that comprises 50 km2

of the Lower Narracook Sequence that

host the Degrussa and Monty VHS

deposits.

For further information, please contact: MrMarcelHilmer,CEO

+61894266400

[email protected]

www.caravelminerals.com.au

_Calingiri Project WA . BulkOreSortingTestworkQ3-42017Bulkoresorting isaprovenpre-concentration technology inwhichbarrengangue isseparatedfrommineralisation

basedonthegradeasmeasuredorinferredfromasensormeasurement.Withbulkoresorting,orethatpreviously

didn’tqualifyforprocessingmaybeupgraded,making iteconomictotreatandimproving theresourceutilisation.

Morevaluablemetalmaybeextractedfromtheresourcewhiletheprocessingplanttreatslesstonnesathigherfeed

grade,reducingconsumptionofwaterandpoweraswellaslowertailingsoutput.Significantcapitalreductionsmay

alsobeachievedthroughsmallerbackendmillingandprocessingrequirements.

The technology is based on industry proven, high capacity industrial sorting machines from major international

equipmentsuppliers,withwellestablishedbusinessesinindustrialmineralsandmaterialrecycling.

Mitchell River Group (“MRG”) have commenced a detailed study utilising the above mentioned cutting-edge ore

sortingtechnologytoremovebarrenmaterialfromorepriortomillingandprocessingthatmaysignificantlyincrease

oregrade.AdesktopstudycompletedbyMRGindicatesthatsortingofCalingiriorecansignificantlyreduceproject

Opex and Capex. If testwork confirms the desktop study, the Calingiri ore grade is expected to be materially

beneficiatedwithsignificantflowthoughimprovementstotheprojecteconomics.

Two vertical diamond drill holes 17CADD001 and 17CADD002 were drilled respectively at the Bindi and Dasher

Prospects.Theyweredesignedtointersectrepresentativemineralisationfortheoresortingtestworkprogram.

17CADD001wasdrilledonSection6573450mNtoadepthof160metersandwaslocatedadjacenttothepreviously

drilledRChole15CARC067which intersected120metresgrading0.37%copperfrom40m–160m.TypicalCalingiri

stylemineralisationwasintersectedbetweentheexpecteddepths.17CADD002wasdrilledonSection6567000mNto

a depth of 120 metres and again intersected mineralisation from a depth of 5 metres, as interpreted from the

resourcemodel.HQ3diametercoringequipmentwasusedwhichreturnedcoreweighingapproximately8.0kgper

metre.ConsolidatingthedepthoftheBindiandDasherholesof120and115respectively,atotalof235metresof

mineralisationwithatotalweightofapproximately1.9tonneswasprovided.

ItisbelievedthattheCalingiricoppermineralisationisparticularlysuitableforthistypeofbeneficiatingbecausethe

mineralisationistypicallyconcentratedinaseriesof ‘stringers’andveinswithinextensivezonesofsilicate“waste”

material.ThefollowingphotographsofcorefromCoreScanforholes17CADD001and002illustratethisrelationship.

Chalcopyrite(“cpy”)andotherironrichminerals(magnetiteandgarnet)ina100mmvein.17CADD001Corefrom99.8m

Sinuouscpystringerwithin2mofdominantlysilicate“waste”.17CADD001Corefrom110.38m

Quarterly Report | 30 September 2017 |

CALINGIRIAdvancingWA’s2ndlargestCopperProjectwith

InnovativeGreenTechnologies

Seriesof5–10mmcpystringersindominantlysilicate“waste”.17CADD002Corefrom71.7m

100mmcpyrichveinand10mmcpystringer.17CADD002Corefrom71.7m

Aspartofthetestworktheoresortingmachinewillbecalibratedtogivethebestvisualestimatesofbeneficiated‘product’

andwastewhichwillbeseparatelybaggedandweighedbyeachDDhole.Foreachof the twoholes,4separateproduct

andwastebagsfromtheoresortingwillthenbecombinedwiththerespectiveproductandwastebagsfromthe-15mm

materialandsentforanalysis.Therewill,therefore,beanaccuratecalculationofweightsandgradesofmaterialpreand

postoresortingforall10testsamples.

JORCScopingStudyJune2016

TheJune2016ScopingStudyhasdeterminedthatCalingiridemonstratesrobustprojectfundamentalswithlowtechnical

risk.Itcontemplatestheco-developmentofthreeopenpits,located120kmtothenortheastofPerthinWesternAustralia.

Centraltotheprojectistheconstructionofastand-alone15milliontonneperannum(Mtpa)oreprocessingfacility.The

Companyconsiderstheproject iseconomicallyviablebasedonitsabilitytopaybackprojectstart-upcapitalandprovide

ongoingpositiveoperationalcashflows.Detailsof thematerialassumptionsutilisedareavailablefordownloadfromthe

CompanysWebsite.

_PrivatePlacement_.

TheCompanywaspleasedtoannounceon31stAugustthatithasissued3.2msharesand8.4moptionsexercisableat

$0.075onorbefore31August2019underTranche2ofaplacementannouncedon7July2017(Placement).

A total of 16.8m shares and 8.4m attaching optionswere issued for gross proceeds of $840,000 across both Tranches

including$162,000inTranche2.

The funds raised from thePlacementarebeing invested intoa“proofofconcept”studyat theCalingiriCopper Project

assessingtheabilityoforesortingtechnologytoremovebarrenmaterialfromorepriortomillingandprocessingthatmay

significantlyincreasetheorefeedgrade.Thefundshavealsoprovidedadditionalworkingcapital.

InsidersoftheCompanyparticipatedfor10%ofthePlacement.

_BryahProject.

NoexplorationactivitieswerecarriedoutontheBryahProjectduringthequarter.

_OccupationalHealth&Saftey.

The Company incurred zero LTI’s during the quarter and the Company’s 12 month moving average Lost Time Injury

FrequencyRate(LTIFR)wasalsozero.TheCompany’srecentsafetyrecordremainsunblemishedandcanbeattributedto

thediligenceandtrainingofallstaffandcontractorstogetherwithinitiativesandcontinuousimprovementsthathavebeen

undertaken.


1.CompetentPersonsStatementsTheinformationinthisreportthatrelatestotheCalingiriMineralResourceestimatesisextractedfromanASXAnnouncementdated

4 April 2016, (see ASX Announcement – 4 April 2016 “Calingiri Maiden JORC Resource” and in relation to the Aircore Drilling,results is extracted from ASX

Announcements dated 14March and 4 April 2017, www.caravelminerals.com.au and www.asx.com.au ). The Company confirms that it is not aware of any new

informationordatathatmateriallyaffectstheinformationincludedintheoriginalmarketannouncementandthatallmaterialassumptionsandtechnicalparameters

underpinningtheMineralResourceestimatesintherelevantmarketannouncementcontinuetoapplyandhavenotmateriallychanged.TheCompanyconfirmsthatthe

formandcontextinwhichtheCompetentPerson’sfindingsarerepresentedhavenotbeenmateriallymodifiedfromtheoriginalmarketannouncement.

2. Forward Looking Statements. This documentmay include forward looking statements. Forward looking statements include, but are not necessarily limited to,

statementsconcerningCaravelMineralsplannedexplorationprogrammes,studiesandotherstatementsthatarenothistoricfacts.Whenusedinthisdocument, the

wordssuchas“could”,“indicates”,“plan”,“estimate”,“expect”,“intend”,“may”,“potential”,“should”andsimilarexpressionsareforwardlookingstatements.Such

statements involve risksand uncertainties,and noassurancescan be provided thatactual resultsorworkcompletedwillbeconsistentwith these forward looking

statements.

3.ProductionTargetsandFinancialInformation.InformationinrelationtotheCalingiriProjectScopingStudy,includingproductiontargetsandfinancialinformation,

includedinthisreportisextractedfromanASXAnnouncementdated28June2016,(seeASXAnnouncement–28June2016,“ScopingStudyConfirmsOutstandingWA

Copper Project”,www.caravelminerals.com.auandwww.asx.com.au.TheCompanyconfirms thatallmaterialassumptions underpinning theproduction targetand

financialinformationsetoutintheannouncementreleasedon28June2016continuetoapplyandhavenotmateriallychanged.

CalingiriProjectSchedule:


Appendix A – Tenement Status

Project Location TenementEquityat1July17

Equityat30Sept17

ChangesinQuarter

Calingiri Wongan/Goomalling E70/2788 100 100

Calingiri Goomalling E70/2789 100 100


Calingiri Wongan E70/3674 100 100







Calingiri Wongan P70/1593 100 100




Bryah Bryah E51/1290 92.5 92.5


Appendix B – Calingiri Project Outline and Prospects

CalingiriProject/JORCResourceestimates


Appendix C – Calingiri Project Mineral Resourses at Various Cut-off Grades

ThefollowingtablepresentstheCalingiriResourcesensitivitytovariouslowerandhighercut-off

grades.

CalingiriProjectMineralResourcesCategoriesatVariousCut-offGrades

Indicated Inferred TotalResource

Cut-offGrade

Tonnes(MT)

GradeCu%

CuMetal(T)

Tonnes(MT)

GradeCu%

CuMetal(T)

Tonnes(MT)

GradeCu%

CuMetal(T)

0.30 106 0.38 405,047 38 0.39 144,751 143 0.38 549,798

0.25 187 0.34 626,279 64 0.34 218,022 251 0.34 844,301

0.20 297 0.30 874,905 105 0.30 307,600 402 0.30 1,182,506

0.15 390 0.27

1,039,787 139 0.28 368,129 530 0.27 1,407,918

PleaserefertotheCompetentPersonsStatementsonpage4formoreinformation


caravel quarterly report 30 september 2017 pre-release

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