Carnaby Raises $17M, Expands Copper Resources to 400,300t CuEq at Greater Duchess

Strategic Acquisition Enhances Resource Base

Carnaby Resources Limited has delivered a compelling update in its December 2024 quarterly report, marked by the transformative acquisition of the Trekelano copper deposit. Situated within 20 kilometres of the Greater Duchess Copper Gold Project in Queensland's Mount Isa region, Trekelano adds a high-grade inferred JORC Mineral Resource Estimate (MRE) of 5.2 million tonnes at 1.6% copper equivalent (CuEq), equating to approximately 85,000 tonnes of CuEq.

This acquisition boosts the pro forma Greater Duchess MRE by 27%, lifting it to 27 million tonnes at 1.5% CuEq, or 400,300 tonnes of contained copper equivalent. The consolidation of these resources not only enhances the project's scale but also de-risks its development pathway by adding critical mass and high-grade ore bodies.

Unlocking Production Potential and Processing Pathways

Significantly, Carnaby has resolved historical mining lease boundary constraints that previously left high-grade mineralisation beneath the Inheritance open pit unmined. Recent drilling beneath this pit returned spectacular intercepts, including 93 metres at 5.2% copper and 1.2 grams per tonne gold, highlighting untapped upside potential.

These developments are expected to materially increase the Greater Duchess production target from approximately 15,000 tonnes to between 20,000 and 25,000 tonnes of CuEq per annum. Carnaby plans to integrate these findings into its ongoing Pre-Feasibility Study (PFS), targeting completion in the third quarter of 2025.

On the processing front, Carnaby has secured a definitive and binding tolling and offtake agreement with Glencore International AG. This partnership commits Glencore to take 100% of the fresh sulphide ore and concentrate produced, enabling Carnaby to pursue a low capital expenditure development route. The agreement also preserves Carnaby's optionality to build its own concentrator in the future, with a termination clause allowing withdrawal from the tolling arrangement upon a final investment decision.

Financial Position and Capital Raising

To fund the Trekelano acquisition and advance the Greater Duchess project, Carnaby successfully raised $17 million through a two-tranche placement of 54.8 million shares at $0.31 each. The first tranche closed with $13.3 million raised, while the second tranche and a $500,000 placement to directors have received shareholder approval and are expected to settle imminently. This capital injection leaves Carnaby with a pro forma cash balance of approximately $18.9 million, positioning the company well to execute its strategic objectives.

Exploration and Project Pipeline

Beyond Greater Duchess, Carnaby continues to advance exploration across its extensive tenure in the Mount Isa inlier, including promising prospects such as Pronuba, Mohawk, Deejay, Jude, and San Quentin. Early drilling and geophysical surveys have identified multiple high-grade copper targets, with assays pending from recent programs. These exploration successes underscore Carnaby's potential for further resource growth and value creation.

Meanwhile, the company maintains a disciplined approach to its Western Australian projects, with no significant work reported during the quarter, focusing resources on its core Queensland assets.

Outlook

Carnaby's December quarter report reflects a company on the cusp of a significant growth phase. The Trekelano acquisition, combined with the Glencore partnership and robust capital position, lays a strong foundation for advancing the Greater Duchess project towards production. The upcoming PFS will be a critical milestone, integrating new resource data and refining the development pathway.