Carnaby Resources Secures Full Ownership of Greater Duchess Copper Gold Project
Carnaby Resources (ASX: CNB) has announced a strategic acquisition that will give the company 100% ownership of the Greater Duchess Copper Gold Project, simplifying ownership structure and positioning the company for accelerated development.
Carnaby to Acquire Remaining 17.5% Joint Venture Interest
In a significant move to consolidate its flagship asset, Carnaby Resources will acquire Latitude 66 Limited's (ASX: LAT) 17.5% interest in the Greater Duchess Copper Gold Joint Venture for a total consideration of $6 million, comprising $2 million in cash and $4 million in fully paid ordinary shares issued at a deemed value of $0.406 per share.
The share price represents the 30-day volume weighted average price for the period ending on the trading day immediately preceding Carnaby's acceptance of Latitude 66's offer. The transaction is expected to be completed by the end of Q3 CY2025 and will terminate the existing joint venture agreement between the companies.
"This Transaction represents an exciting moment for Carnaby shareholders, who will now have access to the full development and exploration potential of the Greater Duchess Copper Gold Project. The Transaction will enable a seamless administrative integration between the JV tenure's copper gold deposits and the already 100% owned Mount Hope and Trekelano deposits, which will allow expedited project development." – Rob Watkins, Managing Director
Strategic Value of Full Ownership
The acquisition delivers multiple strategic benefits for Carnaby:
- Simplified decision-making process for future development plans
- Accelerated permitting timeline with mining lease and environmental applications soon to be submitted
- Seamless integration with Carnaby's existing 100%-owned Mount Hope and Trekelano deposits
- Full exposure to the project's exploration and production potential
- Enhanced project economics for shareholders
The consolidation eliminates administrative complexities associated with joint venture arrangements and provides Carnaby with complete control over project development decisions. This streamlined ownership structure may potentially reduce development timeframes and improve overall project economics.
Understanding the Greater Duchess Project's Significance
The Greater Duchess Copper Gold Project represents one of Australia's emerging copper-gold assets, with a pro forma Mineral Resource Estimate of 27Mt @ 1.5% CuEq for 400kt CuEq (subject to completion of the Trekelano Acquisition).
The project encompasses multiple Iron Oxide Copper Gold (IOCG) deposits across 1,946 km² of highly prospective tenure in Queensland's Mt Isa inlier region, including the significant Mount Hope, Nil Desperandum, and Lady Fanny discoveries.
What is an IOCG Deposit?
Iron Oxide Copper Gold (IOCG) deposits are a distinct type of mineral deposit that represents some of the world's most valuable mining assets. These deposits are characterised by:
- Mineral assemblage: Rich in iron oxide minerals (magnetite or hematite) with economic concentrations of copper and gold
- Scale: Typically large, ranging from tens to hundreds of millions of tonnes
- Grade: Variable but often economically attractive copper and gold values
- Geology: Often associated with large-scale alteration systems and regional structures
- Mining potential: Generally amenable to bulk mining methods with favourable economics
IOCG deposits differ from other copper-gold deposits in their distinctive iron oxide mineralogy and their potential for significant scale. The Olympic Dam deposit in South Australia is perhaps the most famous example of an IOCG deposit globally.
For investors, IOCG deposits are particularly attractive because they can support large-scale, long-life mining operations with strong economics and the potential for significant resource expansion through ongoing exploration.
Development Momentum and Timeline
Carnaby is advancing rapidly toward development, with several critical milestones on the horizon:
- Pre-Feasibility Study (PFS) on track for completion in H2 CY2025
- Mining lease applications to be submitted in the near term
- Environmental permitting process underway
- Binding tolling and offtake agreements already secured with Glencore International AG
The PFS will provide detailed technical and economic assessments of the project, establishing the foundation for development decisions. With binding commercial agreements already in place with Glencore, Carnaby has secured a pathway to market for its future production.
The company is well-positioned financially to execute its plans with $15.8 million in cash as of June 30, 2025.
Investment Case: Why Carnaby Stands Out
Carnaby Resources presents a compelling investment case for several reasons:
| Strength | Description |
|---|---|
| Resource Scale | 27Mt @ 1.5% CuEq for 400kt CuEq across multiple deposits |
| Management Team | Proven and highly credentialed leadership with technical expertise |
| Financial Position | Strong cash position of $15.8M with tight capital structure |
| Commercial Agreements | Binding tolling and offtake agreements already secured with Glencore |
| Development Pathway | Clear pathway to production with PFS nearing completion |
| Exploration Upside | Extensive 1,946 km² land package with multiple exploration targets |
The company's current market capitalisation of $89.1 million (at $0.39 per share) potentially represents an attractive entry point relative to the project's scale and development status.
Resource Breakdown
The Greater Duchess Copper Gold Project comprises multiple deposits, each contributing to the overall resource base:
- Mount Hope: The largest deposit with 10.2Mt @ 1.5% CuEq including both open pit and underground resources
- Nil Desperandum: 4.2Mt @ 1.4% CuEq with both open pit and high-grade underground components
- Lady Fanny: 2.7Mt @ 1.3% CuEq
- Trekelano deposits: 4.7Mt @ 1.8% CuEq (subject to completion of acquisition)
- Additional satellite deposits: Including Duchess, Mt Birnie, Burke & Wills, and Inheritance
This multi-deposit approach provides operational flexibility and the potential for a staged development strategy.
Why Investors Should Watch Carnaby Resources
Carnaby Resources represents a unique opportunity in the ASX-listed copper-gold space:
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Project Consolidation: The acquisition creates a simplified ownership structure for a significant copper-gold project approaching development.
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Near-Term Catalysts: With the PFS nearing completion and permitting applications imminent, multiple value-creating milestones are expected in the coming quarters.
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Copper Market Dynamics: Copper is experiencing strong fundamental demand driven by energy transition and infrastructure development, with supply constraints supporting prices.
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Development-Ready Asset: With resource definition complete, metallurgical testing advanced, and commercial agreements in place, the project is well-positioned for a development decision.
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Exploration Upside: Beyond the defined resources, the extensive tenement package offers significant exploration potential for additional discoveries.
For investors seeking exposure to advanced copper-gold projects with clear development pathways, Carnaby Resources offers a compelling opportunity with significant near-term catalysts and the benefit of newly simplified project ownership.
Ready to Capitalise on Carnaby's Copper Gold Consolidation?
Don't miss this strategic opportunity to invest in one of Australia's most promising copper-gold projects. With Carnaby Resources (ASX: CNB) securing 100% ownership of the Greater Duchess Copper Gold Project, simplified decision-making and accelerated development timelines are set to unlock significant shareholder value. To learn more about this compelling investment opportunity and stay updated on Carnaby's progress toward production, visit Lat66.com today.
