Carnaby Resources Boosts Trekelano Mineral Resource by 47 Percent

Trekelano Resource Expansion Drives Greater Duchess Growth

Carnaby Resources Limited (ASX:CNB) has reported a 10% increase in its total Mineral Resources at the Greater Duchess Copper Gold Project, with the updated estimate now standing at 482,800 copper equivalent (CuEq) tonnes. This uplift is largely credited to new drilling results at the Trekelano deposit, where resources surged 47% to 7.1 million tonnes grading 1.8% CuEq (1.5% copper and 0.4 g/t gold).

The Trekelano update notably reflects substantial additions to the Trek 1 underground Mineral Resource Estimate, which now includes the high-grade Main Lode breccia zone and an expanded Footwall Lode. Trek 1 underground resources amount to 1.0Mt at 3.5% CuEq, although 86% of this remains classified as inferred, underscoring some uncertainty ahead. Meanwhile, the Trek 2 resource increased by 18% to 1.2Mt at 1.2% CuEq.

Robust Drilling and Modelling Underpin Resource Upgrade

The updated Mineral Resource Estimate (MRE) incorporates drilling completed in 2026, including 40 reverse circulation and 50 diamond drill holes for Trek 1, and 44 RC and 27 diamond holes for Trek 2. The resource modelling employed ordinary kriging within wireframes defined by a 0.3% copper envelope, applying a 0.5% CuEq cut-off for open pit potential and 1.0% CuEq for underground mineralisation below 220m vertical depth.

Metallurgical test work confirms copper recoveries of 94% in fresh rock and gold recoveries around 72%, supporting the economic potential of the deposit. The geological interpretation is considered robust, with mineralisation hosted in shear zones and breccia bodies extending to depths of up to 735m at Trek 1. Historic underground mining at Trek 1 extracted 155,000 tonnes at exceptionally high grades (10.9% Cu, 2 g/t Au), providing a production precedent.

Feasibility and Acquisition Plans in Motion

Carnaby is advancing development studies incorporating this updated resource into the ongoing Greater Duchess Feasibility Study (FS). However, certain non-essential activities, including final FS completion, have been deferred pending the proposed acquisition by Evolution Mining Limited (ASX:EVN). Evolution plans to integrate Greater Duchess ore processing into its Ernest Henry operations, which will lead to the termination of existing tolling and offtake agreements with Glencore.

Managing Director Rob Watkins highlighted that the resource increase positions the project on a "superior risk weighted pathway" under Evolution's stewardship. The acquisition, agreed in July 2026, values Carnaby at approximately A$213 million and offers shareholders a premium, reflecting confidence in the project's potential.

What Lies Ahead for Carnaby and Greater Duchess

The resource upgrade solidifies Greater Duchess as a significant copper-gold asset with both open pit and underground mining potential. Yet, the predominance of inferred resources at Trek 1 underground suggests that further drilling and technical studies will be critical to convert these into higher confidence categories. With Evolution Mining poised to take the reins, market watchers will be keen to see how the updated feasibility work shapes the project's development timeline and economics.