Carnaby Advances Greater Duchess with 8.4Mt Ore Reserve and Evolution Scheme

Robust Pre-Feasibility Study Sets Strong Foundation

Carnaby Resources Limited (ASX:CNB) has marked a pivotal year at its Greater Duchess Copper Gold Project in Queensland, unveiling a Pre-Feasibility Study (PFS) in March 2026 that lays out a 12-year mine plan targeting 9.3 million tonnes at 1.9% copper equivalent (CuEq). The study forecasts recovery of approximately 165,000 tonnes of CuEq, including 147,000 tonnes of copper and 70,000 ounces of gold, with an enticing post-tax net present value (NPV) of $322 million at a 7% discount rate and an internal rate of return (IRR) of 281%. Remarkably, the project anticipates a payback period of just 13 months and requires a modest pre-production capital outlay of $11 million.

Complementing the PFS, Carnaby declared its maiden Probable Ore Reserve of 8.4 million tonnes at 1.9% CuEq, a milestone that significantly de-risks the pathway to development. The reserve encompasses both open pit and underground operations, with initial mining focused on open pits at Trek 1, Trek 2, Inheritance, Mount Hope Central, Lady Fanny, and Burke & Wills, before transitioning underground at Mount Hope Central and Nil Desperandum.

Exploration Success Expands Resource Base

The company’s exploration efforts have borne fruit, particularly at the Trekelano deposit where drilling extended the high-grade Main Lode breccia well beyond existing resources and beneath the PFS open pit shell. Notable intercepts include 7 metres at 9.3% CuEq and 8.1 metres at 9.9% CuEq, underscoring continuity of high-grade mineralisation over a 600-metre plunge. Additionally, the discovery of the Trek 1 Footwall Lode, with intercepts such as 6 metres at 12.6% CuEq, adds further upside potential.

At Mount Hope Central, the Miniboom Lode discovery revealed substantial mineralisation with intercepts like 232 metres at 1.3% CuEq from surface, including 65 metres at 2.9% CuEq, highlighting a new near-mine growth opportunity. These results, alongside ongoing resource updates, have driven a 57% increase in Indicated Mineral Resources to 17.6 million tonnes at 1.7% CuEq, lifting the total Greater Duchess Mineral Resource Estimate to 30.8 million tonnes at 1.6% CuEq as of August 2026.

Ownership Consolidation and Financial Position

During the fiscal year, Carnaby solidified its control over the Greater Duchess project by acquiring 100% of the Trekelano mining leases and the remaining 17.5% interest in the Greater Duchess Copper Gold Joint Venture from Latitude 66 Limited. These transactions, involving cash payments and share issuances totaling over $11 million, consolidate Carnaby’s exposure to the project’s exploration and production potential.

Financially, Carnaby reported a net loss after tax of $9.53 million for FY2026, widening from a $7.39 million loss in the prior year, reflecting increased exploration and evaluation expenditure. However, net assets rose to $44.3 million, supported by a cash and financial assets position of $10.8 million at year-end. The company also completed a $12.5 million placement to the QIC Critical Minerals Fund in late 2025 to fund ongoing activities.

Evolution Mining Acquisition Offers Strategic Upside

Post year-end, Carnaby entered a binding Scheme Implementation Deed with Evolution Mining Limited to be acquired via a scheme of arrangement valued at approximately $213 million on a fully diluted basis. The scheme offers Carnaby shareholders 0.0682 Evolution shares per Carnaby share, translating to an implied price of $0.77 per share, a 60.4% premium to Carnaby’s last close before announcement.

The deal promises shareholders immediate value uplift and exposure to Evolution’s diversified gold and copper portfolio. Evolution plans to develop Greater Duchess by processing ore at its Ernest Henry mill, terminating existing tolling and offtake agreements with Glencore, who will receive approximately 28.6 million Carnaby shares as part of the arrangement. The Carnaby Board unanimously recommends the scheme, subject to shareholder approval and independent expert endorsement.

Governance and Remuneration

Carnaby’s governance framework remains robust with a board comprising experienced mining and finance professionals, including Managing Director Rob Watkins and Non-Executive Chairman Peter Bowler. The company maintains a disciplined remuneration policy aligned with shareholder interests, with no dividends declared during the year. Share-based payments continue to incentivise key management personnel and employees under the Employee Incentive Securities Plan.

Audit oversight was provided by Grant Thornton Audit Pty Ltd, which reported no material misstatements and confirmed compliance with Australian Accounting Standards and the Corporations Act.