The Carnaby Resources Ltd (ASX: CNB) share price has sunk by as much as 13% today, despite another positive discovery at its Queensland site.
At the time of writing, the Carnaby Resources share price is trading 8.06% down at $1.71. However, the materials sector (ASX: XMJ) is the best performer today, up 0.8%.
So, why are ASX investors unenthused by the copper and gold explorer's latest announcement?
Let's take a closer look…
Copper mineralisation at Nil Desperandum
Carnaby Resources has exploration sites in the Pilbara Mallina Basin and Yilgarn Margin in Western Australia, and in the Mt Isa Inlier in Queensland.
Today's announcement comes from its Queensland site — more closely, the Nil Desperandum Prospect of the Greater Duchess Copper-Gold Project.
The miner has hit a 70-metre downhole of copper sulphide mineralisation from 195 metres at the NLRC069 drill hole zone. It held a "visual estimate" of between 1 to 18% chalcopyrite, which is yet to be officially confirmed.
Another mineralisation of the same nature was intercepted at the NLRC067 drill hole, with a 63-metre downhole zone from 169 metres. The interception also contained the same percentage of chalcopyrite and is awaiting results.
With the results pending, and with the spread of COVID-19 in Queensland creating delays to drilling, Carnaby is focusing on the Lady Fanny target on the same site.
Comment from management
Managing director Rob Watkins called the copper mineralisation found in these zones "excellent".
(…) the copper grades are clearly increasing in depth in the southernmost hole drilled which intersected 41m @ 4.1% copper in NLDD044.
While we must wait to complete heritage surveys before we can target the IP anomalies over 400m strike southwest of NLDD044, we have no shortage of quality drill targets to pursue at the Lady Fanny Prospect, where six lines of IP are in progress targeting below shallow drill results of up to 27m @ 2.8% copper, 0.9% g/t gold in LFRC009.
We eagerly await results from drilling at Nil Desperandum and IP geophysics from Lady Fanny.
Carnaby Resources share price snapshot
It hasn't all been downhill for Carnaby Resources.
Last Friday, the Carnaby Resources share price shot up 33% to $1.80 apiece. This came after the company announced it had intersected strong copper sulphide mineralisation at the same site. In the month before, it soared after pleasing assay results.
The miner has a market capitalisation of $246 million and a price-to-earnings ratio (P/E) of 573.
