Carnaby Resources Strikes Gold in Latest Trekelano Drilling Results

Carnaby Resources Extends Trekelano With Impressive 164m Copper-Gold Intersection

Carnaby Resources (ASX: CNB) has announced significant new drill results from its Trekelano Project in Queensland's Mt Isa region, highlighting substantial expansion potential of the Inheritance deposit with wide copper-gold intersections at depth.

Key Drilling Results Confirm Major Expansion Potential

The standout result from the latest Carnaby Resources Trekelano drilling results comes from drill hole CBRC012, which intersected a remarkable 164-meter downhole interval grading 0.4% copper and 0.2 g/t gold from 195 meters, with an estimated true width of approximately 115 meters. This extensive mineralised envelope includes several higher-grade zones:

• 26 meters at 1.0% copper and 0.6 g/t gold (including 13 meters at 1.6% copper and 1.1 g/t gold)
• 11 meters at 0.6% copper and 0.3 g/t gold
• 6 meters at 1.1% copper and 0.3 g/t gold

The company also reported impressive near-surface mineralisation from hole CBMH002, designed for metallurgical testing, which encountered 23 meters at 1.5% copper and 0.2 g/t gold from surface, including 4 meters at 6.1% copper and 0.6 g/t gold.

Trekelano Developing Into a "Baseload" Deposit

Managing Director Rob Watkins emphasised the significance of these results: "We continue to be extremely encouraged by the initial drilling we have completed at Trekelano and look forward to receiving and reporting more results shortly. Trekelano looks like a big mineral system that has potential to expand at depth and grow significantly with further drilling."

The drilling confirms a southern plunge to the Inheritance deposit that appears to be widening at depth and remains completely open. This growing footprint suggests Trekelano could develop into what the company describes as a "much larger baseload style deposit" to complement Carnaby's other high-grade gold and silver discoveries in the Greater Duchess Copper Gold Project.

Understanding the Inheritance Deposit's Geometry

The new Carnaby Resources Trekelano drilling results have provided valuable insights into the structure of the Inheritance deposit:

1. CBRC012 confirmed a moderate southern plunge to the mineralisation that was missed by historical deeper drilling
2. The drill hole intersected strong mineralisation higher than expected in the hangingwall, suggesting a flattening dip
3. Downhole electromagnetic (EM) surveys are planned to further define the extent of mineralisation

Meanwhile, hole CBMH002 demonstrated high-grade mineralisation at surface that was historically restricted due to mining lease boundary constraints during previous operations by Barrick. With the granting of ML90183 on the east side of the pit, these constraints no longer exist.

What Is A "Baseload Style" Deposit?

In mining terminology, a "baseload style" deposit refers to a large-volume, consistent ore body that can provide steady, reliable production over an extended mine life. These deposits typically feature:

• Large tonnage with moderate but consistent grades
• Relatively predictable mineralisation patterns
• Potential for economies of scale in mining operations
• Ability to support long-term production schedules

For investors, baseload deposits represent valuable mining assets that can provide steady cash flow over many years, balancing the higher-grade but potentially shorter-lived deposits in a company's portfolio.

"Trekelano looks like a big mineral system that has potential to expand at depth and grow significantly with further drilling. We believe there is potential for Trekelano to develop into a much larger baseload style deposit to complement our other high-grade discoveries," notes Managing Director Rob Watkins.

Strategic Significance for Carnaby's Greater Duchess Project

The expansion potential identified in the latest Carnaby Resources Trekelano drilling results holds significant implications for Carnaby's broader Greater Duchess Copper Gold Project, which currently boasts a mineral resource estimate of 27 million tonnes at 1.5% copper equivalent for 400,000 tonnes of contained copper equivalent.

These results come as Carnaby advances its Pre-Feasibility Study (PFS) for the Greater Duchess Project, with completion targeted for the second half of 2025. Furthermore, the company has already secured binding tolling and offtake agreements with Glencore International AG, providing a clear pathway to potential production.

What's Next for Trekelano?

Carnaby has outlined several near-term activities to further develop the Trekelano opportunity:

1. Completion of downhole EM surveys on CBRC012
2. Receipt and reporting of pending assay results from diamond core tails
3. Additional drilling to test the southern extension and depth potential
4. Integration of metallurgical test results into the Greater Duchess PFS

Why Investors Should Pay Attention

Carnaby Resources presents a compelling investment case based on these latest results:

1. Expanding Resource Base: The Carnaby Resources Trekelano drilling results demonstrate significant potential to add substantial tonnage to the already impressive Greater Duchess resource.

2. Advanced Development Timeline: With a PFS nearing completion and offtake agreements in place, Carnaby is progressing rapidly toward development decisions.

3. Strong Financial Position: With $17.7 million cash (as of March 31, 2025) and a market capitalisation of approximately $83.4 million, the company is well-funded to advance its projects.

4. Strategic Location: The Greater Duchess Project benefits from its position in the prolific Mt Isa mining district with established infrastructure.

5. Dual-Focus Portfolio: Beyond its copper-gold assets in Queensland, Carnaby also holds gold projects near De Grey Mining's Hemi discovery, providing exposure to another high-potential mineral province.

With these latest drilling results further confirming the substantial scale potential at Trekelano, Carnaby Resources continues to strengthen its position as an emerging copper-gold developer in one of Australia's premier mining jurisdictions. This progress follows industry trends where companies like Vital Metals securing funding and Lucapa securing stakes in their respective projects demonstrate how resource companies are positioning themselves for future growth.

The growing importance of copper in the green energy transition also adds strategic value to Carnaby's developments, particularly as rare earth elements discoveries continue to highlight critical mineral demand. In addition, the presence of high-grade antimony in other Australian projects further emphasizes the broader strategic mineral renaissance currently underway in the mining sector.

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