Carnaby Resources Hits Massive Copper Intersections at Trekelano and Mount Hope North
Carnaby Resources (ASX: CNB) has reported significant drill results from its Trekelano and Mount Hope North prospects in Queensland, highlighted by substantial copper-gold intersections that strengthen the company's growing copper portfolio in the Mt Isa region.
Trekelano's Inheritance Deposit Delivers Exceptional Width and Grade
The standout result comes from diamond drill hole CBMH002 at the Trekelano Inheritance deposit, which returned a massive 154-metre intersection grading 1.0% copper equivalent from surface. This extensive mineralised zone includes higher-grade sections of:
- 23m at 1.6% copper equivalent from surface
- 60m at 1.6% copper equivalent from 94m, including
- 10.5m at 4.8% copper equivalent from 128.6m
The drill hole, positioned from the pit ramp approximately 70m below surface, was primarily designed to collect metallurgical samples. However, it has confirmed significant continuity of the Inheritance orebody that was partially mined by Barrick during the Global Financial Crisis.
"We are only just getting started at Trekelano. We are doing what we need to do—metallurgical, geotechnical and resource delineation drilling to bring Trekelano copper gold expansion as rapidly as possible into the Greater Duchess Pre-Feasibility Study," said Managing Director Rob Watkins.
Mount Hope North Demonstrates Shallow High-Grade Potential
Alongside the Trekelano drill results, Carnaby reported promising assays from resource definition drilling at Mount Hope North, where several shallow high-grade copper intersections were identified:
- MHRC289: 24m at 2.3% copper equivalent from 33m and 9m at 2.1% copper equivalent from 94m
- MHRC292: 21m at 2.5% copper equivalent from 54m, including 8m at 4.6% copper equivalent from 56m
- MHRC288: 13m at 1.8% copper equivalent from 37m, including 6m at 3.2% copper equivalent from 39m
These shallow results from Mount Hope North highlight the potential for open-pittable mineralisation currently being assessed in the company's Pre-Feasibility Study for the Greater Duchess Project.
Understanding Copper Equivalent Calculations
Copper equivalent (CuEq) is a standardised measurement method used in the mining industry to express the combined value of multiple metals as a single copper percentage figure. This makes it easier to compare different mineral deposits that contain various combinations of valuable metals.
For Carnaby's exploration results, the company calculates copper equivalent using the formula:
Cu% + (Au g/t × 0.85)
This calculation is based on December 2024 spot prices of US$8,505/t for copper and US$2,520/oz for gold, with an AUD:USD exchange rate of 0.63. The formula accounts for metallurgical recoveries of 95% for copper and 85% for gold, as demonstrated in preliminary test work.
The copper equivalent calculation allows investors and analysts to better understand the economic potential of a multi-metal deposit by expressing its value in terms of a single metal.
Strategic Importance to Greater Duchess Project
The Carnaby Resources Trekelano drill results are particularly significant for the company's Greater Duchess Copper Gold Project, which has a Pro forma Mineral Resource Estimate of 27Mt at 1.5% CuEq for 400kt CuEq. The company is currently progressing a Pre-Feasibility Study for the project, targeted for completion in the second half of 2025.
The Trekelano acquisition, expected to be completed in the coming weeks, will add substantial resource tonnage to the Greater Duchess Project. Carnaby has already secured binding tolling and offtake agreements with Glencore International AG, positioning the company for potential future production.
Future Exploration Potential
Beyond the current drilling results, both Trekelano and Mount Hope North present significant exploration upside. At Trekelano, Carnaby notes that "very little deeper drilling has been historically completed immediately away from the known deposits," suggesting potential for resource expansion.
The Carnaby Resources Trekelano drill results demonstrate the considerable potential for this newly acquired project area. The continuity of high-grade mineralisation indicated by hole CBMH002 suggests that further exploration could substantially increase the resource base.
Similarly, at Mount Hope North, previous drilling has identified broad copper mineralisation that remains open, particularly in the South Vein Complex zone, which returned 83m at 1.0% Cu and 20m at 2.3% Cu in previous drilling. This follows the trend of major gold copper discoveries in the region that have generated significant interest from investors.
The Greater Duchess Copper Project: A Growing Resource Base
Carnaby's Greater Duchess Copper Project encompasses several deposits across its extensive tenure in the Mt Isa region. The Pro forma Mineral Resource Estimate of 27Mt at 1.5% CuEq includes:
- Multiple open-pit resources including Trekelano Inheritance, Trekelano 1, Trekelano 2, Mount Hope, Nil Desperandum, Lady Fanny, Burke & Wills, Mt Birnie, and Duchess
- Underground resources at Mount Hope, Nil Desperandum, Inheritance, and Trekelano 1
The Carnaby Resources Trekelano drill results further enhance the company's resource base and contribute to the ongoing Pre-Feasibility Study.
Metallurgical Implications
The diamond drill hole CBMH002 at Trekelano was specifically designed to collect metallurgical samples, which have been sent to AMML for fast-tracked metallurgical test work. These samples will help determine the processing characteristics of the Trekelano ore and its compatibility with the broader Greater Duchess Project development plans.
For the Mount Hope North prospect, Carnaby is completing additional metallurgical test work to determine the flotation and leach characteristics of the shallow mineralisation. The company notes that the transitional ores at Mount Hope North are dominated by chalcocite and chalcopyrite, while oxide ores are hosted by iron oxides and minor malachite.
Importantly, Carnaby highlights that true oxide mineralisation at Mount Hope and other Greater Duchess deposits represents only a very small tonnage, with floatable transitional and fresh rock sulphide ores making up over 98% of the resource inventory.
Investment Perspective
With a market capitalisation of approximately $98 million (at 43 cents per share) and a cash position of $17.7 million as of March 31, 2025, Carnaby is well-funded to advance both exploration and development activities.
The company's tight capital structure (228.4 million shares outstanding), strong cash position, and growing resource base make it an interesting prospect for investors seeking exposure to advanced copper-gold exploration in Australia. In addition, the recently commenced copper gold prospect drilling in New South Wales shows the growing interest in Australian copper-gold assets.
Carnaby's proven management team, including Non-Executive Chairman Peter Bowler and Managing Director Rob Watkins, brings significant experience to the development of the Greater Duchess Project as it advances toward potential production.
As copper demand continues to increase globally due to electrification and renewable energy trends, Carnaby's expanding copper-gold resource in a tier-one mining jurisdiction positions the company well for future growth. Furthermore, the exploration potential of its projects indicates there could be additional discoveries in the pipeline.
The Carnaby Resources Trekelano drill results represent an important step in the company's strategy to develop a significant copper-gold production hub in the Mt Isa region of Queensland, with multiple deposits potentially feeding a central processing facility. This approach aligns with other successful projects in the area where high-grade rare earth discoveries have complemented copper-gold operations.
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