Carnaby Resources Ltd (ASX: CNB) shares are defying weakness in the resource sector, trading higher after the company released a prefeasibility study for its Greater Duchess copper and gold project in Queensland.
While the share prices of major gold companies such as Bellevue Gold Ltd (ASX: BGL), Regis Resources Ltd (ASX: RRL), and Capstone Copper Corp (ASX: CSC) are lower in mid-morning trade, Carnaby shares are 4.8% higher at 43.5 cents.
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Low-cost capex
Carnaby released both a pre-feasibility study (PFS) and a maiden ore reserve for Greater Duchess, with the PFS stating that it would only cost $11 million to bring the project into production.
Greater Duchess was expected to produce for 12 years, with a six-year open-pit operation followed by a transition to underground mining.
The project is expected to have a payback period of 13 months under the company's base metal price assumptions, improving to 11 months if spot prices for copper and gold are used.
The maiden ore reserve indicates that the mine has 8.4 million tonnes of ore at a copper equivalent grade of 1.7%.
Forging ahead with next steps
The company has now started its feasibility study, which it expects to finish in the second quarter of calendar year 2026, with a final investment decision targeted by June 30.
This is expected to be followed by first production in the second half of calendar year 2026.
Carnaby Managing Director Rob Watkins said:
The release of the Greater Duchess PFS is a major milestone for Carnaby and its shareholders and is the culmination of extensive work completed by the Carnaby team and independent consultants over the course of the last year. The PFS results highlight an extremely robust new mine development project located close to existing world class infrastructure and processing facilities in the Mount Isa region. The Greater Duchess Copper Gold project has a clear pathway to a low pre-production capex ($11M) near term mining operation (target first production H2 CY26) that will capitalise on record copper and gold prices.
The mining project is expected to deliver EBITDA of $983 million, or $1.27 billion at spot prices.
The company added that there was the potential for further expansion of the mineral resource.
All deposits remain open at depth and the exploration upside in the Greater Duchess mine camp has clearly demonstrated potential to deliver additional production target tonnes in the future. This is particularly evident at Trek 1 and Trek 2 where recent outstanding exploration results have been recently reported.
The project will have an all-in sustaining cost of production of $9583 per tonne of copper, compared with the assumption used in the PFS of $16,500 per tonne.
Carnaby Resources was valued at $115 million at the close of trade on Friday.
