On news of the release, the Caravel share price rose to an intraday high of 25 cents and has now dipped slightly to 24 cents, up 8.89% at the time of writing.
Based in Western Australia, Caravel is a gold, copper and base metals exploration and resource development company.
Its flagship Caravel Copper project, located north-east of Perth, is currently engaged in a feasibility study to determine future development. On initial estimates, the site has a mineral resource of 661.9 million tonnes of copper at a grade of 0.28%. This makes it one of the largest untapped copper resources in the Western Australian state.
What did Caravel announce?
The Caravel share price is moving higher after investors seem pleased with the company's progress.
Caravel advised that it has received a 5-year exploration licence for its Toolbrunup project. The decision was made by the Western Australian Department of Mines, Industry Relations and Safety (DMIRS). Covering an area of 114 square kms, the licence allows Caravel to begin exploration works between Tambellup and Gnowangerup.
Previously, the company identified mafic sill and dyke structure through its magnetic survey data in the South West Yilgarn Terrane. Caravel said that the magnetic structure is around 15km long with no surface exposure caused from surface weathering and shallow cover.
Looking at the geochemical sampling results gathered, the company recorded significant nickel, copper, and platinum deposits. Caravel advised that the discovery of magnetic anomaly is somewhat similar to the style and size of the Gonneville complex at the Chalice Mining Ltd (ASX: CHN) Julimar Project.
The company noted that it's currently engaged in discussions with landowners and has completed reconnaissance field visits to the Toolbrunup project. Furthermore, Caravel is looking to conduct a low-cost evaluation for the project using geochemistry methods, and an electromagnetic survey for pinpointing magmatic sulphide deposits.
Caravel share price snapshot
The Caravel share price has been a strong performer over the last year, rising to more than 600%.
During April, the company's shares dipped to a historic low of 1.5%, before accelerating to multi-year highs.
Based on the current share price, Caravel commands a market capitalisation of $71 million.