New High-Grade Drill Hit at Trek 2 Raises Questions on Resource Expansion Risks

• 18m @ 5.0% CuEq drill intercept at Trek 2, outside existing resource
• Trek 2 mineralisation open to north and at depth
• Trek 1 prospect extended with promising copper-gold zones
• Pre-Feasibility Study underway targeting Q1 2026 completion
• Binding tolling and offtake agreements secured with Glencore

Exploration Breakthrough at Trek 2

Carnaby Resources Limited (ASX: CNB) has unveiled a significant new high-grade copper-gold discovery at its Trek 2 prospect within the Greater Duchess Copper Gold Project, located in the prolific Mt Isa region of Queensland. The highlight is an 18-metre intercept grading 5.0% copper equivalent (CuEq) from 115 metres depth, which stands as the most substantial drill hit recorded at Trek 2 to date.

This intercept lies outside the current Mineral Resource Estimate (MRE), underscoring the prospect’s potential for expansion. The mineralisation remains open to the north and at depth, suggesting that the deposit could grow considerably with further drilling. The recent results come from infill and extension drilling aimed at upgrading the resource classification and expanding the open pit design parameters.

Trek 1 Also Shows Encouraging Growth

Alongside Trek 2, Carnaby has reported positive drill results at the nearby Trek 1 prospect. Recent drilling has extended both the Main Lode and a newly identified Footwall Lode to the north, with mineralisation remaining open along strike. Notably, the Footwall Lode has yielded high-grade intersections, including a previous 6 metres at 12.6% CuEq, highlighting the prospect’s robust upside potential.

Diamond drilling is ongoing to delineate a 400-metre high-grade extension at Trek 1, with further assay results awaited. These developments complement the company’s broader strategy to grow its resource base ahead of advancing feasibility studies.

Advancing Towards Feasibility and Production

Carnaby is progressing a Pre-Feasibility Study (PFS) for the Greater Duchess Project, targeting completion in the first quarter of 2026. The PFS currently incorporates indicated resources, with the recent drilling results expected to feed into a Definitive Feasibility Study (DFS) that will consider a larger open pit design incorporating inferred resources.

The company has also secured binding tolling and offtake agreements with Glencore International AG, a major player in the commodities market. This strategic partnership provides Carnaby with a clear pathway to market for its copper and gold production, enhancing the project’s commercial viability.

Strong Financial and Management Foundations

With a tight capital structure, a cash position of $16 million as of December 2025, and a proven management team led by Managing Director Rob Watkins, Carnaby is well-positioned to advance its exploration and development programs. The company’s extensive tenure of nearly 2,000 square kilometres in the Mt Isa Inlier hosts multiple iron oxide copper gold (IOCG) deposits, providing a robust pipeline of exploration targets beyond Trek 1 and Trek 2.

Rob Watkins emphasised the significance of the new results, stating that the spectacular 18m @ 5.0% CuEq intercept confirms the exploration upside at Trekelano and anticipates further growth in the open pit design as drilling continues.

Bottom Line?

Carnaby’s latest drilling success at Trek 2 sets the stage for a potentially larger, higher-grade copper-gold operation, with upcoming feasibility studies and further drilling poised to define the project’s next growth phase.

Questions in the middle?

• How will the new high-grade intercepts impact the final mine design and economics in the upcoming DFS?
• What is the timeline and scale for the planned follow-up drilling to expand the inferred resources at Trek 2?
• How might fluctuations in copper and gold prices affect the project’s viability given the current metal equivalent assumptions?