Carnaby Advances Greater Duchess with Strong PFS and Maiden Ore Reserve

Robust Financial Metrics from Greater Duchess PFS

Carnaby Resources (ASX:CNB) has put a spotlight on the economic potential of its Greater Duchess Copper Gold Project in Queensland with a Pre-Feasibility Study (PFS) that delivers a pre-tax net present value (NPV7%) of A$472 million under base case commodity prices. The project boasts an internal rate of return (IRR) of 281% and a rapid payback period of just 13 months, underpinned by a modest pre-production capital expenditure of A$11 million. Spot price assumptions lift these figures further, pushing the NPV7% to A$663 million and IRR to an eye-watering 398%. Carnaby’s PFS envisages a 12-year mine life processing 9.3 million tonnes of ore at 1.9% copper equivalent (CuEq), targeting an average annual recovery of around 17,000 tonnes of CuEq over eight years.

The study integrates six open pits transitioning to underground mining, with a maiden Probable Ore Reserve of 8.4 million tonnes at 1.9% CuEq, translating to 164,300 tonnes of contained CuEq. Operating costs are competitive, with an all-in sustaining cost (AISC) of approximately A$9,583 per tonne of payable copper. This strong financial profile positions Greater Duchess as a potentially lucrative copper-gold operation in the Mount Isa region.

Drill Results Extend High-Grade Mineralisation at Trekelano

The company’s exploration momentum continues at the Trekelano prospect, where recent drilling has revealed exceptional high-grade copper-gold mineralisation well outside the current Mineral Resource Estimate (MRE). Notably, the Trek 1 extension shows a 600-metre down-plunge continuity of a steeply plunging breccia shoot, highlighted by a standout intercept of 8.1 metres at 9.9% CuEq including 4.3 metres at 16.5% CuEq at a depth of 485 metres. These results build on earlier findings and confirm the potential to grow the resource base significantly.

Similarly, the Trek 2 prospect delivered the largest drill hit to date with an intercept of 35 metres at 2.9% CuEq, including 18 metres at 5.0% CuEq from 115 metres depth, remaining open at depth and to the north. This discovery signals further upside for the project’s underground mining phase. Carnaby has already commenced a 3,000-metre reverse circulation drilling program to expand these promising zones, reinforcing the exploration upside within the Greater Duchess mine camp. These findings echo the company’s earlier reports of 600m down-plunge extension and 18m at 5.0% CuEq drill intercept.

Feasibility Study Progress and Development Preparations

Carnaby is advancing its Feasibility Study (FS) for the Greater Duchess project, aiming for completion by mid-2026 and a Final Investment Decision (FID) shortly thereafter. The FS focuses on toll milling arrangements under binding agreements with Glencore International AG, with the flexibility to transition to a standalone concentrator operation given 24 months’ notice. Key activities underway include metallurgical test work, geotechnical drilling, and refining open pit designs. Environmental permitting is progressing with minor and major amendment applications being finalised, alongside ongoing baseline studies.

To support development, Carnaby has secured an option to acquire a second-hand 47-room camp and associated infrastructure, signalling readiness to move towards production targeted for the second half of 2026. The company’s cash position of A$13 million, including restricted cash, provides a solid financial footing as it transitions from exploration to development. This follows a period of sustained capital management and exploration investment, with exploration and evaluation expenditure of A$2.7 million during the quarter.

Wider Portfolio and Corporate Position

While the Greater Duchess Project dominates Carnaby’s activity, the company also holds several gold and lithium projects in Western Australia, including Mount Grant, Strelley, Big Hill, Malmac, and Throssell, though no work was reported on these during the quarter. The company maintains a tight capital structure with 276.1 million shares on issue and a market capitalisation of approximately A$134 million at 48.5 cents per share.

Binding tolling and offtake agreements with Glencore provide a significant strategic advantage, securing processing capacity and market access for copper concentrates. Carnaby’s management team, led by Managing Director Rob Watkins, continues to build operational capability with recent key appointments in mine management and health and safety roles, gearing up for the transition to production.