Carnaby Resources Ltd Acquires Greater Duchess Copper Project

Carnaby Resources Achieves Full Control of Greater Duchess Copper-Gold Empire

Carnaby Resources Limited (ASX: CNB) has successfully completed its buyout of the remaining 17.5% stake in the Greater Duchess Copper Gold Joint Venture from Latitude 66 Limited, securing 100% ownership of what represents one of Australia's most significant copper-gold development opportunities. The $6 million acquisition provides Carnaby with complete control over a project containing 27 million tonnes at 1.5% copper equivalent for 400,000 tonnes of copper equivalent resources.

"Completion of the Transaction grants Carnaby full exposure to the significant value of the former JV tenure's exploration and production potential and will allow the Company the freedom and flexibility to rapidly progress the necessary permitting applications."

Strategic Consolidation Provides Development Flexibility

The acquisition eliminates joint venture complexities that previously constrained development decisions, positioning Carnaby Resources Ltd to accelerate permitting and advance multiple deposit development scenarios. Furthermore, with $15.8 million in cash and a market capitalisation of $119 million, the company maintains financial flexibility whilst controlling 1,924 square kilometres of highly prospective tenure in Queensland's proven Mt Isa mineral province.

The transaction demonstrates sophisticated financial engineering, combining immediate cash settlement with equity participation to preserve working capital. However, the structure also ensures Latitude 66 maintains exposure to future value creation through its shareholding position.

Transaction Structure:

• Cash component: $2 million
• Share consideration: $4 million via 9,852,217 new shares at $0.406 per share
• Total consideration: $6 million for 17.5% stake
• Implied project value: $34.3 million

Understanding Copper Equivalent: The Universal Mining Language

Copper equivalent (CuEq) represents a standardised method for combining different metals into a single comparable metric, crucial for multi-metal deposits like Greater Duchess. The calculation converts gold values into copper equivalent based on relative metal prices and recovery rates, enabling investors to assess the total economic potential of mixed copper-gold mineralisation.

What Makes This Calculation Critical?

The Greater Duchess project uses the formula: CuEq = Cu% + (Au_ppm × 0.7), based on September 2023 spot prices of US$8,500 per tonne for copper and US$1,950 per ounce for gold. Moreover, this calculation incorporates demonstrated metal recoveries of 95% for copper and 90% for gold from preliminary metallurgical test work.

Why This Matters for Investors:

• Enables direct comparison between different deposits and projects
• Simplifies economic modelling across multiple commodity exposures
• Provides clear metric for resource growth and development prioritisation
• Industry standard used by analysts and institutional investors

Carnaby's 1.5% copper equivalent grade across 27 million tonnes represents substantial scale in today's copper-constrained market, where new discoveries are increasingly rare and development timelines extended. In addition, the standardised metric allows direct comparison with major copper developments globally.

Resource Portfolio Spans Multiple High-Grade Deposits

The Greater Duchess project encompasses twelve distinct deposits across various development scenarios, from open pit to underground operations. Following completion of the acquisition, the resource inventory demonstrates both scale and grade diversity, providing multiple development pathways and risk mitigation through deposit diversification.

The portfolio structure provides operational flexibility whilst reducing single-asset concentration risk. Consequently, the company can optimise production sequencing based on market conditions and operational readiness.

Key Deposit Highlights

Mt Hope: The project's largest underground resource contains 6.4 million tonnes at 1.6% copper and 0.3 g/t gold. This deposit represents the cornerstone of underground development scenarios currently being evaluated in the Pre-Feasibility Study.

Mt Hope Open Pit: Complementing the underground resource, the open pit component holds 3.8 million tonnes at 1.3% copper and 0.2 g/t gold. Furthermore, this provides near-surface mining opportunities with reduced capital expenditure requirements.

Lady Fanny: This deposit contributes 2.7 million tonnes at 1.2% copper and 0.2 g/t gold. For instance, it offers additional production capacity across both open pit and underground scenarios.

Duchess: The established deposit contains 3.7 million tonnes at 0.7% copper and 0.1 g/t gold, providing proven mineralisation with established geological understanding and development precedent.

Pre-Feasibility Study Nears Completion in Strategic Copper Market

With the Pre-Feasibility Study (PFS) targeted for completion in H2 2025, Carnaby approaches a critical value inflection point. The study will evaluate development scenarios across multiple deposits whilst global copper markets face supply constraints and growing demand from electrification trends.

However, the timing aligns favourably with copper market dynamics, as supply deficits are projected to persist through the decade. In addition, the company's strategic positioning in Queensland provides jurisdictional advantages for permitting and development.

Development Scenarios Under Assessment

The PFS is evaluating multiple processing approaches, including both standalone operations and toll processing arrangements. The company has established binding tolling and offtake agreements with Glencore International AG, providing operational flexibility and market access certainty.

Upcoming Milestones:

• H2 2025: Pre-Feasibility Study completion
• 2025-2026: Permitting application advancement
• Ongoing: Implementation of binding agreements with Glencore International AG

Metallurgical Advantages

Preliminary metallurgical testing has demonstrated strong recovery rates across the deposit portfolio. The results indicate 95% copper recovery and 85-90% gold recovery rates, supporting robust economics across various processing scenarios.

Strategic Location Benefits:

• Established mining jurisdiction with proven regulatory framework
• Access to existing infrastructure in the Mt Isa region
• Proximity to processing facilities and transportation networks
• Skilled workforce availability in established mining province

Investment Case: Copper Development in Premium Jurisdiction

Following completion of the Greater Duchess acquisition, Carnaby Resources represents compelling exposure to copper development at a time when new copper projects are increasingly scarce. Moreover, these projects are essential for global electrification initiatives driving unprecedented demand growth.

The Greater Duchess consolidation eliminates partnership constraints whilst positioning the company to capitalise on favourable copper market dynamics. Furthermore, this is achieved through a substantial, well-defined resource base in a premier mining jurisdiction.

Market Context and Timing

Global copper supply faces significant constraints as existing mines reach maturity whilst new discoveries decline. The International Energy Agency projects copper demand will double by 2040, driven primarily by renewable energy infrastructure and electric vehicle adoption.

This supply-demand imbalance creates a favourable environment for advanced copper projects in established jurisdictions. However, the development timeline advantage becomes crucial as competition for processing capacity and skilled workforce intensifies.

Key Investment Differentiators:

Value Creation Pathways

The combination of substantial resources, established partnerships, and development flexibility creates multiple pathways for value realisation as copper markets tighten. The company's strategic positioning allows for various development approaches, from staged production scenarios to comprehensive project development.

In addition, the portfolio structure enables selective deposit development based on market conditions and operational readiness. Consequently, this provides risk mitigation whilst optimising capital deployment efficiency.

Financial Position Supports Development Timeline

Carnaby maintains a strong balance sheet with $15.8 million in cash as of June 30, 2025, providing financial flexibility to advance the Pre-Feasibility Study and initial permitting activities. The company's market capitalisation of $119 million reflects current project valuation whilst offering potential upside as development milestones are achieved.

The transaction structure demonstrates prudent capital management, with $2 million in cash and $4 million in equity consideration completing the acquisition. This approach preserves cash resources whilst providing Latitude 66 with ongoing exposure to project value creation.

Furthermore, the financial position provides runway for development activities without immediate dilution pressure. However, major construction funding will require additional capital raising or debt financing arrangements.

Why Investors Should Monitor Carnaby Resources

The Greater Duchess consolidation represents a fundamental shift in Carnaby's investment proposition, transitioning from exploration potential to development reality. Moreover, this transition includes the scale and partnerships necessary for commercial success.

When the acquisition control was finalised, the company gained complete operational flexibility over a world-class copper-gold resource. Furthermore, this eliminates the decision-making complexities inherent in joint venture structures.

Carnaby Resources has positioned itself as a significant copper development story in Australia, with 100% control over 400,000 tonnes of copper equivalent resources and approaching Pre-Feasibility Study completion. The combination of substantial resources, strategic partnerships with Glencore, and development flexibility creates multiple value catalysts as copper markets face sustained supply-demand imbalances.

Critical Monitoring Points for Investors

Near-term Catalysts (2025):

• Pre-Feasibility Study results and development scenario selection
• Permitting progress and regulatory milestone achievement
• Resource expansion potential across the 1,924 km² tenure package

Medium-term Value Drivers (2025-2027):

• Construction timeline clarification and capital requirements
• Strategic partnership developments and additional offtake arrangements
• Copper price dynamics and market positioning relative to peers

Operational Considerations

The company's technical team, led by experienced mining professionals, continues to advance multiple work streams in preparation for development decisions. The integration of twelve individual deposits into coherent development scenarios requires sophisticated mine planning and sequencing strategies.

However, this complexity also provides operational flexibility and risk diversification benefits typically unavailable to single-deposit developments. In addition, the phased development approach enables capital-efficient growth strategies.

The Greater Duchess consolidation positions Carnaby Resources as a pure-play copper development opportunity in one of Australia's premier mining jurisdictions. With complete project control, established processing partnerships, and approaching feasibility completion, the company offers investors direct exposure to copper market dynamics through a substantial, well-defined resource base poised for commercial development.

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