Mount Isa Inlier Gold and Copper Projects

Mount Isa Inlier Gold and Copper Projects

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

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.

Greater Duchess Copper-Gold Project (82.5%)

The Duchess Copper-Gold Project lies to the North of the Tick Hill Gold Project on a land holding of approximately 323 km2 with multiple undeveloped copper rich Iron Oxide Copper Gold (IOCG) and epigenetic Tick Hill style gold targets over a 50 km corridor.

The tenement package 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. Individual deposits within the project include Nil Desperandum, 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 Mt 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 Prospect

Nil Desperandum is rapidly emerging as a significant copper-gold deposit of scale in the Mount Isa district with initial drilling programs intersecting broad zones of copper-gold mineralisation extending over 300m and completely open at depth.

At least two mineralised horizons referred to as the Hangingwall Zone and the Footwall Zone were identified, with standout results including;

Hangingwall Zone

  • NLRC017 – 18m @ 0.5% copper from 160m
    including 4m @ 1.6% copper from 174m and
  • NLDD02453m @ 0.5% copper from 236m
    including 18m @ 0.9% copper from 236m
    including 8m @ 1.3% copper from 246m
  • 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
    including 1m @ 6.0% copper, 0.7 g/t gold from 163m

Footwall Zone

  • 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
    including 9m @ 3.1% copper, 0.4 g/t gold from 268m
    including 3m @ 8.1% copper, 0.9 g/t gold from 268m

Mount Birnie Prospect

RC Drilling at Mount Birnie has identified a high-grade copper-gold shoot, plunging steeply west and open at depth.

Notable results include;

  • MBC0165m @ 5.2% copper, 2.6 g/t gold from 76m
  • MBC031 – 2m @ 2.6% copper from 64m
    and 5m @ 3.4% copper, 1.3g/t gold from 116m
    and 10m @ 1.4% copper from 166m
  • MBC03230m @ 0.8% copper from 190m
    including 8m @ 1.4% copper from 190m
    and 8m @ 1.5% copper from 205m