Mount Isa Inlier Copper and Gold Projects

Mount Isa Inlier Copper and Gold Projects

The Company’s Mount Isa Inlier Copper and Gold Projects in Queensland comprise the Greater Duchess Copper Gold Project and the Tick Hill Gold Project.

Carnaby continues to explore for the offset or repetition of the Tick Hill orebody at depth, however due to short average strike length of 80 m and lack of any dispersion, the offset location is yet to be discovered.

Carnaby continues to be highly encouraged by the Tick Hill North target where the last hole drilled in December 2019 intersected an intensely altered 10 m wide Lodestone unit closely resembling the host rock unit and alteration associated with the Tick Hill orebody.

Greater Duchess Copper Gold Project (82.5-100%)

The Greater Duchess Copper Gold Project lies approximately 70km to the south of Mount Isa on a land holding of 1022 km2, containing multiple undeveloped copper rich Iron Oxide Copper Gold (IOCG) and epigenetic Tick Hill style gold targets over a 100 km corridor.

The major Nil Desperandum and Lady Fanny discoveries are standout prospects within the Project, where broad high-grade copper mineralisation has been intersected at both locations.

The tenement package also includes the historical Duchess Copper-Gold Mine which produced approximately 205,000 t at 12.5% copper from 1900-1940 as well as numerous shallow IOCG deposits in a camp scale setting.

Other individual prospects within the project include Mount Birnie, Duchess, Big Beauty, Freckle and numerous other target areas of shallow historical workings, large soil anomalies and undrilled outcropping mineralisation.

Potential exists to define several shallow open pittable resources that can be amalgamated into a single mining project and hauled to nearby processing facilities at either Mount Isa, Cloncurry or Osborne or to discover a large stand-alone IOCG deposit.

The Company’s current exploration efforts have been centred around the following two prospects:

Nil Desperandum Discovery (82.5%)

The Nil Desperandum Prospect is rapidly emerging as a significant copper-gold deposit of scale in the Mount Isa district where multiple RC and diamond drilling programs have defined a greater than 500m plunging high-grade mineralisation shoot, completely open at depth and to the southwest.

Stand out results from Nil Desperandum include:

  • NLDD044 – 41m @ 4.1% copper, 0.5 g/t gold from 247m
    including 24m @ 6.5% copper, 0.7 g/t gold from 251m
    including 9m @ 10.3% copper, 1.2 g/t gold from 264m
  • NLDD084 – 31m @ 3.9% copper, 1.0 g/t gold from 313m
    Including 24m @ 5.0% copper, 1.3 g/t gold from 313m
    Including 12m @ 8.1% copper, 2.2 g/t gold from 322m
  • NLRC027 – 60m @ 1.0% copper from 139m
    including 23m @ 1.7% copper, 0.4 g/t gold from 152m
    including 7m @ 2.4% copper, 0.3 g/t gold from 161m
  • NLRC017 – 87m @ 0.9% copper from 190m
    including 56m @ 1.1% copper from 221m
    including 30m @ 1.8% copper, 0.3 g/t gold from 242m

IP survey results have outlined a significant chargeability anomaly over 400m in length to the southwest of NLDD044, producing numerous follow-up targets.

Lady Fanny Discovery (82.5-100%)

Initial exploration activities at the Lady Fanny Prospect, located 3km north of Nil Desperandum, has yielded stunning results including:

  • LFRC009 – 27m @ 2.8% copper, 0.8 g/t gold from 61m
    including 9m @ 4% copper from 65m
  • LFRC019 – 22m @ 2.4% copper, 0.5 g/t gold from 44m
    including 10m @ 3.7% copper from 48m
  • LFRC013 – 20m @ 2.3% copper, 0.5 g/t gold from 30m
    including 6m @ 5.5% copper from 38m
  • LFRC008 – 40m @ 1.0% copper from surface.

Significant IP surveys conducted at Lady Fanny have defined significant chargeability anomalies, which now suggests that the mineralised corridor at the prospect is greater than 600m in length.

Tick Hill Gold Mine (100% owned)

Historical Tick Hill Mine

The historic Tick Hill Mine produced 511,000 ounces of gold at 22.5 g/t gold between 1991 and 1995. It was mined to only 235 m below surface at an average of 2,184 ounces of gold per vertical metre, with an average strike length of just 80 m.

It is believed that the Tick Hill orebody was faulted off at depth with the offset extension yet to be discovered. Historical reported metallurgical gold recoveries were 97% with a highly positive mill reconciliation reported against resource estimates.

Tick Hill Gold Project and Project Development

Following the acquisition of Tick Hill, Carnaby rapidly expanded the Tick Hill Mineral Resource, adding 215,000 t @ 6.52 g/t gold for 45,100 ounces, bringing total Mineral Resources to 838,000 t @ 2.41 g/t gold for 65,000 ounces and, following the completion of a Pre-Feasibility Study (PFS), Carnaby announced a maiden Tick Hill Ore Reserve of 459,900 t @ 1.89 g/t gold for 28,000 gold ounces.

The Mineral Resources and Ore Reserves are contained within Tick Hill’s 3 granted Mining Leases.
The PFS contemplated 3rd party processing of 474,200 t @ 2.0 g/t to recover approximately 27,300 oz of gold at an All-In Sustaining Cost (AISC) of A$1,493 per ounce.

Subsequently Carnaby has successfully divested the Tailings Dam Ore Reserve Stockpiles of 410,900 t @ 1.35 g/t for 17,800 gold ounces for consideration of $4 million cash plus a 5% standard NSR Royalty worth approximately $2M.

Carnaby retains 100% ownership of Tick Hill and all remaining Mineral Resources and Ore Reserves, including the historical Tick Hill Open Pit which produced 180,000oz @ 18.1 g/t from a 70m deep open pit. New high grade RC drill results have confirmed that the Tick Hill Main Lode extends 20m into the north wall, where a proposed extension forms part of the mineral inventory for the Tick Hill open pit cutback which is forecast to produce 63,300t @ 6.1 g/t for 12,500oz, generating pre-tax cashflows of ~$15,000,000 at AISC of A$1,190/oz.

Negotiations to develop, profit share or sell the Tick Hill open pit project are continuing. Carnaby continues to explore for the offset or repetition of the Tick Hill orebody at depth, however due to short average strike length of 80 m and lack of any dispersion, the offset location is yet to be discovered.

Carnaby continues to be encouraged by the Tick Hill North target where a Lodestone unit closely resembling the host rock unit and alteration associated with the Tick Hill orebody has been intersected in diamond drilling.