SINGLE TRAIN OPTION STUDY

This Pre-Feasibility Update (PFS Update) announcement is further to the Caravel Copper Project Pre-Feasibility Study and Maiden Ore Reserve announcement (PFS) reported on 12 July 2022.

The PFS outlined opportunities for improvements to the process plant, including consolidation of the plant into a single ~27Mtpa throughput train, the use of High-Pressure Grinding Rolls (HGPR) to replace Semi-Autogenous Grinding (SAG) Mills and the adoption of Coarse Particle Flotation (CPF).

PFS Update studies into these opportunities have been undertaken by the PFS engineers, Ausenco Services Pty Ltd (Ausenco).

This PFS Update reports on the capital and operating cost savings that may be achieved from adopting these initiatives. Other elements of the Caravel Copper Project as described in the PFS are unchanged.

This announcement should be read along with the Cautionary Statement and the 12 July 2022 PFS.

The Caravel Copper Project Pre-Feasibility Study (PFS) has defined a robust project that can produce 62,000 tpa of copper in concentrate at low cost (C1 ~US$1.72/lb Cu) generating strong cashflows over an initial 28-year mine life.

Detailed technical, environmental and commercial studies indicate the Project can be built and operated with low operating costs, low technical risks, minimal environmental impact and positive economic and social outcomes.

With the accelerating transition to renewables and electrification over the next decade, copper is forecast to become the world’s most in-demand metal. Located in the number one mining jurisdiction in the world the Project is one of very few large undeveloped copper projects globally that can be brought into production in this timeframe. The Project’s large resources, technical simplicity, access to existing infrastructure and a sound social, economic and political setting all contribute to the attractive investment fundamentals for the Project.

Caravel Minerals Limited (Caravel) (ASX:CVV) is pleased to announce it has revised the 2019 Scoping Study to produce a new 2021 Scoping Study for its 100%-owned Caravel Copper Project (Project) in Western Australia (Figure 1).

The 2021 Scoping Study is part of a Pre-Feasibility Study (PFS) for the Project, which is on track for completion in early CY2022 and is provided as guidance on the PFS and input assumptions.

Engineering services firm Ausenco is undertaking Caravel Copper Project PFS studies on process plant and infrastructure design, capital and operating cost estimation and execution planning. Ausenco has reviewed the 2019 Scoping Study project parameters and updated a range of assumptions prior to commencing detailed PFS work.

Updated parameters for the 2021 Scoping Study include:

• Mineral Processing
• Capital Expenditure
• Operating costs
• Revenue Forecasts
• 2021 Scoping Study comparison to 2019 Scoping Study

Caravel Minerals Ltd (ASX:CVV) (Caravel) is pleased to release the results of the 2019 Scoping Study on its 100% owned Caravel Copper Project (Project).

The results of the 2019 Scoping Study confirm the very real potential to establish a new copper mining and processing operation to produce and export copper concentrate to global markets over 23 years and potentially longer.

The Scoping Study sets out a project that processes 16Mtpa of ore, ramping up to 30Mtpa by year eight to produce around 45,000 tonnes before growing to around 65,000 tonnes of copper in concentrate per year for export.

Caravel has used a conservative long-term average copper price of US$6,612 per tonne in the Scoping Study to calculate a Pre-Tax NPV of A$1.05 billion at a 7% discount rate. C1 cash costs of US$1.45/lb place the Caravel Copper Project in the second quartile of copper producers for the first five years, positioning the Project to be a low to mid-cost operator over its life.

This Scoping Study highlights the potential for developing a robust standalone mining and processing operation capable of generating strong margins and excellent financial returns.

Initial capital expenditure of A$481 million will be repaid within the first four years of production before capital expenditure in year five of A$256 for a ramp-up to 30Mtpa commencing in year six.