Carnaby Resources Trek 1 Discovery Delivers Exceptional High-Grade Copper-Gold Results

Carnaby Resources Strikes High-Grade Gold at Trek 1 Discovery

Carnaby Resources Limited (ASX: CNB) has delivered another exceptional high-grade intersection at its Trek 1 discovery, reinforcing what's shaping up as a significant copper-gold find beneath historical workings at the Greater Duchess Project in Queensland's prolific Mt Isa region. The Carnaby Resources Trek 1 discovery continues to demonstrate exceptional potential with consistent high-grade results.

The latest results include 6m @ 5.0% CuEq (4.7% Cu, 0.4g/t Au) including 3m @ 9.6% CuEq (9.0% Cu, 0.7g/t Au) from drill hole CBRC065, confirming exceptional continuity of high-grade mineralisation. This mineralisation has now been extended over 300m down dip.

With a strong cash position of $19.5 million following a recent $12.5 million placement to QIC Critical Minerals and Battery Technology Fund, Carnaby is well-funded to advance what Managing Director Rob Watkins calls "a very significant high-grade discovery."

Trek 1 Discovery Gains Momentum with Consistent High-Grade Hits

The Carnaby Resources Trek 1 discovery continues to deliver impressive results beneath historical underground workings that were last mined in 1945 down to just 240m below surface. Furthermore, every new hole drilled into the Trek 1 extension has intersected high-grade breccia-controlled mineralisation, demonstrating strong continuity within the steeply west-dipping shear zone.

Key Recent Intersections:

The results from CBDD017 represent the deepest intersection in the breccia lode to date, extending the main zone high-grade lode to over 300m down dip whilst remaining completely open along strike and at depth.

"The Trek 1 extension is rapidly emerging as a very significant high-grade discovery below the historical underground workings… It is extremely encouraging that every new hole we have drilled into the Trek 1 extension has hit high-grade breccia controlled mineralisation." – Rob Watkins, Managing Director

Understanding Copper Equivalent Grades: A Key Metric for Investors

Copper Equivalent (CuEq) represents the total value of all metals in a deposit expressed as a single copper percentage. In addition, this metric allows investors to quickly assess the economic value of multi-metal mineralisation.

Carnaby calculates CuEq using the formula: CuEq = Cu% + (Au g/t × 0.85), based on December 2024 consensus forecast prices of US$8,505/t for copper and US$2,520/oz for gold. This calculation also incorporates an AUD:USD exchange rate of 0.63.

Why This Matters to Investors

CuEq grades provide a standardised way to compare the economic potential of different intersections and deposits, factoring in both copper and gold contributions to overall value. The high CuEq grades at the Carnaby Resources Trek 1 discovery indicate substantial economic potential, particularly given the consistent grade continuity demonstrated across multiple drill holes.

Inheritance Prospect Delivers Broad Mineralised Zones

Beyond Trek 1, Carnaby continues to expand mineralisation at the Inheritance prospect, with extension drilling intersecting broad zones immediately beneath the preliminary Pre-Feasibility Study (PFS) open pit design. However, the focus remains on the exceptional results from the Trek 1 discovery.

Recent Inheritance Results:

These results demonstrate significant mineralisation continuity at Inheritance, with the main interpreted high-grade plunge remaining open for future drilling. Moreover, the company has identified a large off-hole electromagnetic (EM) conductor interpreted to be down-plunge of the high-grade zone, representing a priority target for upcoming drill programmes.

Aggressive Drilling Campaign Accelerates Discovery Timeline

Carnaby is currently operating two drill rigs as part of a comprehensive 5,000m RC/DD programme targeting completion in Q1 CY2026. For instance, the drilling campaign is designed to:

• Extend Trek 1 mineralisation along strike and down-dip
• Test high-grade plunge positions at multiple prospects
• Support the Pre-Feasibility Study scheduled for Q1 CY2026
• Define additional high-grade zones within the broader deposit area

The programme includes both reverse circulation (RC) and diamond drilling (DD) to provide detailed geological and structural information. This information is critical for resource definition and mine planning.

Strategic Drilling Approach

The two-rig operation ensures maximum efficiency in testing multiple targets simultaneously. Furthermore, the combination of RC and DD drilling provides both rapid progress and detailed geological understanding necessary for advancing the project towards development.

Strategic Asset Portfolio Positions Carnaby for Growth

Carnaby's Greater Duchess Copper Gold Project encompasses over 1,946 km² of tenure hosting multiple Iron Oxide Copper Gold (IOCG) deposits. These deposits are located within the world-class Mt Isa mineral field.

IOCG deposits are large-scale mineral systems characterised by their association with iron oxide minerals and typically high-grade copper and gold mineralisation. In addition, these systems often provide long-term, sustainable mining opportunities.

Current Mineral Resource Estimate

• Total: 26.9Mt @ 1.3% CuEq for approximately 400kt copper equivalent
• Multiple deposits: Duchess, Mount Hope, Trekelano, Nil Desperandum, Lady Fanny, Burke & Wills, Inheritance, and Trek 1

Strategic Advantages

• Binding tolling and offtake agreements with Glencore International AG
• 100% ownership following recent joint venture buyouts
• Camp-scale deposit cluster within established mining region
• Proven metallurgical characteristics supporting 95% copper and 85% gold recoveries

The company also holds gold projects covering 397 km² near Northern Star Resources' Hemi Development Project, providing additional exploration upside.

Why Should Investors Follow Carnaby Resources?

Carnaby Resources has positioned itself as a compelling copper-gold investment opportunity with several key differentiators that warrant close investor attention. However, the standout performer remains the exceptional results from the Carnaby Resources Trek 1 discovery.

Financial Strength & Funding Security

• $19.5 million cash position provides substantial funding runway
• Recent institutional backing from QIC Critical Minerals Fund validates investment thesis
• Tight capital structure with 276.1M shares on issue and $105M market capitalisation

Discovery Momentum & Resource Growth

• Consistent high-grade intersections at the Trek 1 discovery demonstrating discovery potential
• 300m+ strike extension confirmed with mineralisation open in all directions
• Multiple prospect portfolio offering numerous value creation opportunities

Strategic Market Position

• Mt Isa location provides world-class geological setting and infrastructure access
• Glencore offtake agreements securing future revenue streams
• Pre-Feasibility Study completion by Q1 CY2026 approaching key value inflection point

Carnaby Resources represents a rare combination of discovery success, financial strength, and strategic positioning in one of Australia's premier copper-gold regions. With aggressive drilling programmes underway and major study milestones approaching, the company offers significant near-term catalysts for value creation.

What Are the Key Upcoming Catalysts?

Investors should monitor several critical milestones that could significantly impact Carnaby's valuation:

• Additional drill results from 5,000m programme (ongoing)
• Pre-Feasibility Study completion (Q1 CY2026)
• Resource estimate updates incorporating the Trek 1 discovery
• Potential strategic partnerships or development agreements

Furthermore, the ongoing drilling programme at the Carnaby Resources Trek 1 discovery provides regular newsflow opportunities. Each new intersection has the potential to extend the known mineralisation and enhance the project's overall value proposition.

Carnaby Resources has demonstrated exceptional exploration success at the Trek 1 discovery, delivering consistent high-grade copper-gold intersections that extend known mineralisation over 300m down-dip. With strong financial backing, multiple development pathways, and ongoing discovery potential across a world-class project portfolio, Carnaby represents a compelling investment opportunity in the critical minerals sector.

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