Here's why the Carnaby (ASX:CNB) share price is rocketing 33% today

The company's shares are surging to a record high on Thursday.

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The Carnaby Resources Ltd (ASX: CNB) share price is having a day out today. This comes after the company announced strong drill results within the Greater Duchess Copper Gold Project in Mt Isa, Queensland.

At the time of writing, the mineral exploration company's shares are trading 33.33% higher to an all-time high of $1.66.

Rising gold share price represented by a green arrow on piles of gold block.

Image source: Getty Images

Carnaby untaps huge high-grade discovery

In today's statement, Carnaby advised it has received exceptional assay results from the first five holes drilled at the Lady Fanny Prospect. These highlighted high-grade copper and high-grade gold results, which included:

  • 27 metres at 2.8% Cu, 0.8 g/t Au from 61 metres (drill hole LFRC009)
  • 20 metres at 2.8% Cu, 0.8 g/t Au from 30 metres (drill hole LFRC013)
  • 17 metres at 2.8% Cu, 0.8 g/t Au from 74 metres (drill hole LFRC012)

While the assay is extremely encouraging, the company will move ahead with a major program at the Lady Fanny discovery. It noted that the area along with the Burke & Wills prospects will be targeted with ground Induced Polarisation (IP) surveys. This will aid further drilling to explore for mineralisation that may exist beneath the historical drill results.

Carnaby managing director, Rob Watkins commented:

These stunning first pass drill results from Lady Fanny just 3 km north of the spectacular Nil Desperandum high grade discovery really demonstrate the untapped potential of the greater than 5km long IOCG corridor that is rapidly emerging within the Greater Duchess Copper Gold Project.

Investors have been fighting to get a hold of Carnaby shares following the impressive assay results. Notably, Lady Fanny remains completely open and undrilled to the north of the high-grade result. If RC drilling uncovers additional mineralisation, this could potentially lead to the company's shares further moving into uncharted territory.

Carnaby share price snapshot

Over the last 12 months, the Carnaby share price has jumped by more than 370% for shareholders. The company's shares reached an all-time high today of $1.66.

Based on today's price, Carnaby commands a market capitalisation of around $1.35 billion with approximately 131.61 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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