Carnaby Resources, Hammer Metals' JV partner, has announced a maiden high-grade copper-gold resource at South Hope, part of the Greater Duchess Project, which now totals 29.2Mt at 1.3% copper and 0.2 g/t gold.
- Maiden JORC Mineral Resource declared at South Hope with Hammer Metals holding 49%
- Greater Duchess Project updated to 29.2Mt @ 1.3% Cu, 0.2 g/t Au, totaling 440,500 CuEq tonnes
- Carnaby targets near-term development with Final Investment Decision expected in Q2 2026
- Hammer Metals free-carried to production at South Hope with milestone payments triggered by Carnaby
- Extensive drilling and metallurgical test work underpin robust resource estimates
South Hope Maiden Resource Declared
Carnaby Resources (ASX, CNB), joint venture partner with Hammer Metals (ASX, HMX), has declared a maiden high-grade copper-gold Mineral Resource at the South Hope deposit. Hammer Metals holds a 49% interest in South Hope, which forms part of the broader Greater Duchess Copper-Gold Project in Queensland's Mount Isa region.
The South Hope maiden Mineral Resource Estimate (MRE) totals 0.3 million tonnes at 1.7% copper and 0.3 grams per tonne gold, equating to 5,600 copper equivalent tonnes. This resource complements Carnaby's updated Greater Duchess Project MRE, which now stands at 29.2 million tonnes grading 1.3% copper and 0.2 g/t gold, or 440,500 copper equivalent tonnes.
Greater Duchess Project Update and Development Plans
The Greater Duchess Project encompasses several deposits including Mount Hope, Trekelano, Nil Desperandum, Lady Fanny, Mohawk, and others. Carnaby has reported a 10% increase in overall Mineral Resources and a 49% increase in Indicated Mineral Resources, driven largely by upgrades at Trekelano and Mount Hope.
Carnaby is advancing a Pre-Feasibility Study (PFS) targeting completion in the current quarter, with a Final Investment Decision (FID) anticipated in the second quarter of 2026. The company aims to commence first ore production in the second half of 2026, capitalising on strong copper and gold prices. Tolling and offtake agreements with Glencore International AG provide a pathway for near-term development.
Implications for Hammer Metals and JV Structure
Hammer Metals is free-carried to production at South Hope, with milestone payments structured to benefit Hammer upon Carnaby's development decisions. A $5 million cash payment to Hammer would be triggered by Carnaby's Decision to Mine at either Mount Hope Central or Mount Hope North, diluting Hammer’s interest in South Hope to 30%. An additional $6 million payment is payable upon a positive Final Investment Decision for South Hope or other deposits within the JV area.
Hammer Metals’ Managing Director Daniel Thomas expressed optimism about the maiden resource declaration and Carnaby’s progress, highlighting the potential for South Hope’s shallow mineralisation to be developed as part of a regional mining hub.
Robust Geological and Metallurgical Foundations
The resource estimates are supported by extensive drilling programs, including over 189 drill holes at Mount Hope and detailed infill drilling at Trekelano. Metallurgical test work indicates excellent recoveries for copper and gold, with conventional flotation methods expected to be effective. The majority of mineralisation is fresh or transitional sulphide, amenable to straightforward processing.
Independent consultants Snowden Optiro and SRK Consulting have reviewed and endorsed the resource estimation methodologies and results, adding confidence to the reported figures.
Looking Ahead
Carnaby plans to continue drilling, particularly at the high-grade Trek 1 extension, with results pending and an updated resource estimate expected in the third quarter of 2026. The PFS completion and subsequent FID will be critical milestones to watch as the project moves closer to production.
Bottom Line?
With a maiden resource at South Hope and a strengthened Greater Duchess inventory, Carnaby and Hammer Metals are poised for a pivotal development phase in 2026.
Questions in the middle?
- How will Carnaby’s Decision to Mine impact Hammer Metals’ stake and cash flow?
- What are the detailed economics and timelines emerging from the Greater Duchess PFS?
- How might ongoing drilling at Trek 1 and other deposits further enhance the resource base?