Carnaby Resources Kicks Off 3,000m Drilling to Extend High-Grade Copper-Gold Zones at Greater Duchess

Drilling Program Targets High-Grade Extensions at Trekelano

Carnaby Resources Limited (ASX:CNB) has commenced a circa 3,000-metre reverse circulation (RC) drilling program at its Greater Duchess Copper Gold Project in Mount Isa, Queensland. The program is focused on extending known high-grade zones at the Trekelano prospect, where recent drilling has delivered exceptional copper-gold intersections.

Key targets include the Trek 2 zone, where an 18-metre intercept grading 5.0% copper equivalent (CuEq) from 115 metres depth was reported in early March 2026, and Trek 1, which returned a 6-metre interval at an impressive 12.6% CuEq from 211 metres. The program also aims to test down-plunge extensions of the Inheritance deposit and explore the structural corridor between Inheritance and Trek 1.

Building on Strong Foundations from Recent Studies

This drilling campaign follows Carnaby’s release of a robust Pre-Feasibility Study (PFS) in March 2026 that outlined a maiden Ore Reserve of 8.4 million tonnes at 1.9% CuEq, underpinning a potential 12-year mine life. The PFS confirmed the project’s economic viability with a relatively modest pre-production capital expenditure of A$11 million and payback expected within 13 months.

Managing Director Rob Watkins emphasised the importance of the recent high-grade drill results, stating that the ongoing drilling is a critical step towards delivering a Feasibility Study and advancing the project towards development. The company’s strong cash position of A$16 million, as of December 2025, provides a solid financial base to support this work.

The Greater Duchess Project benefits from binding tolling and offtake agreements with Glencore International AG, providing market certainty for future production. This commercial backing adds a layer of confidence to Carnaby’s development pathway.

Expanding Mineral Resources and Exploration Upside

The recent drilling success at Trek 1 and Trek 2 builds on a growing resource base, with the Greater Duchess Mineral Resource Estimate updated in January 2026 to 29 million tonnes at 1.5% CuEq, containing approximately 441,000 tonnes of copper equivalent metal. The company continues to explore multiple deposits within its 1,900 square kilometres of tenure, including Mount Hope, Nil Desperandum, Lady Fanny, and Mohawk.

Notably, the high-grade breccia shoot at Trek 1 has been extended by 600 metres down-plunge, confirming continuity beyond the current Mineral Resource Estimate and hinting at further growth potential. This extension was detailed in a recent update where results included 8.1 metres at 9.9% copper equivalent, highlighting the prospect’s capacity to add significant value to the project’s inventory.

With assay results pending from a recently completed diamond drilling program, investors and observers will be watching closely for further indications of resource expansion and grade continuity.

Commodity Prices and Metal Equivalents Underpin Valuations

Carnaby calculates copper equivalent grades using conservative metal price assumptions from December 2024 consensus forecasts, applying recoveries of 95% for copper and 85% for gold based on preliminary metallurgical testing. This methodology supports the company’s confidence that the metals reported have a reasonable potential to be recovered and sold, a key consideration for project economics and valuation.

The company confirms that no material changes have occurred to the assumptions or technical parameters underpinning its Mineral Resource and Ore Reserve estimates since their respective announcements earlier this year.