Staying on the subject of copper from last post , Carnaby Resources posted the MRE for their Greater Duchess Copper project in Mt Isa. However shares were down on Friday to 11% to 72.5c. Obviously expecting better.

I'll try and make this short as there is lots to absorb in the MRE.

Good

1. Initial resource estimate and there is potential for increase.

2. Other results not included and they will proceed with a PFS

3. This is my opinion, but IF a feeder zone can be found at Mt Hope, then there is lots of upside. I don't know enough about geology on this and why I highlight it is my "thought bubble". Reason why is because both are open at depth.

Bad

Where to start?

1. First is the tonnage curves. Looks like a low grade resource once you increase to 1% Cu cutoff

Mt Hope

LF

ND

Focus on increasing the cut-off to 1% the actual mineral estimate goes down. All the numbers show 0.5% cutoff which is low grade high tonnage mining. You'll need a special team to get this to work. One that comes to mind is Capricorn Metals but I'm sure Mark Clark has better things on his plate!

2. Have to highlight Carnaby is proposing both Open Pit and Underground. This is difficult to visualise given the true width is below 30m as highlighted in my previous straw and why I sold. To give a bit of context, 30m is the size of a low res housing block, so how you are going to drive a heavy frontloader around the operations?

3. Not much gold in the overall grade. This seems more like a copper than gold resource.

In summary I had the right idea to sell last year but my timing was off after the instos starting pumping the share price. Goes to show that the fundamentals have finally caught up recently. Maybe looks good value but with recession around the corner this could go lower if copper starts falling.

What else to look out for

Going through the tenement maps, looks like Carnaby tenements in the Pilbara is close to Wildcat Resources in Blue (WC8). As you know, Lithium I think is still pumping despite what others think and there are lots of reasons why that I won't go into. There was news before of pegmatite outcrops at Big Hill but the Lithium grade was too low. Maybe revisiting could be a good idea.

Also maybe doing some drilling for Gold around Strelley which is close to DEG might be a good idea.

I hold Capricorn Metals but not CNB, WC8 or DEG

Every time there is an announcement or news there is a forced wave of selling

Unfortunately have to obey price action so I took the chance to get out after Macquarie initiated coverage and share price popped which predictably did not last long (1.50 price target)

I'm not sure what will change sentiment. But looking at the cross sections, it looks like the true widths of some of the newer discoveries such as Mt Hope may be average at best.

Still on the watchlist though. Maybe they should start work on Strelley which is near the Hemi discovery and Gold sentiment is starting to shift?

Mt Hope Drilling results

Carnaby resources put out the results of their first pass drilling of the Mt Hope IP anomaly:

• HRC001 21m @ 1.0% Copper, 0.2 g/t Gold from 51m
• A 12m copper sulphide quartz vein into the heart of the IP anomaly from 189m (results pending)

Seems like the price in last couple of weeks were pricing in 2% as opposed to 1%.

The price did not share Watkin's enthusiasm for the results finishing off 10% at $1.

In other news, drilling around the lithium anomaly at the pegmatites of Big Hill (near Strelley Gold Project WA) did not yield any visible lithium (results also pending)

Held

"Booming" IP Anomaly at Mt Hope.

Appears CNB is not aware of any copper bear market after this announcement of a large IP anomaly.

Held

Stock price has continued to run since the latest announcement.

In summary, CNB seems to have found anomalies between discoveries Nil Desperandum and Lady Fanny along a 3km corridor.

Was thinking of topping up around the announcement but copper sentiment has been poor.

Have to caution that there is some negative sentiment towards Rob Watkins who made some discoveries for the now defunct Beadell Resources (taken over in the end at quite a low price). I'm still trying to understand this history as it could be unjustified.

Oz Minerals exploration arm Oz Australia also paid 1.30 last year for an equity stake in CNB in the hope of a major discovery.

Apologies about the poor copy-paste.

[held]

Major New IP Anomalies Light Up 3 Km Corridor Between Nil Desperandum And Lady Fanny Copper Gold Discoveries

Carnaby Resources Limited (ASX: CNB) (Carnaby or the Company) is excited to announce very significant new geophysical anomalies at the Greater Duchess Copper Gold Project in Mt Isa, Queensland.

Highlights

Lady Fanny South Prospect:

• Induced Polarisation (IP) surveys south of the Lady Fanny discovery have recorded a very large and strong IP chargeability anomaly under shallow cover south of any previous drilling. New Shamrock Prospect:

• IP surveys approximately 1.5km northeast of Nil Desperandum have recorded a large and strong IP chargeability anomaly coincident with undrilled historical workings.

The Company’s Managing Director, Rob Watkins commented:

"The undrilled 3km corridor between Nil Desperandum and Lady Fanny now has two excellent deposit scale drill targets following the identification of these highly significant IP anomalies. IP has proven to be a fantastic targeting tool being responsible for the original high grade discovery hole at Nil Desperandum. These new IP anomalies are both of similar strength and magnitude and are being fast tracked to first pass drill testing."