Carnaby Resources (ASX:CNB) acquires Mount Hope mining lease

• Carnaby Resources (CNB) acquires the Mount Hope mining lease which lies just nine kilometres from the Lady Fanny and Nil Desperandum discoveries in QLD’s Mt Isa region
• While Mount Hope was discovered more than a century ago and produced 322,000 tonnes at 2.1 per cent copper, no verifiable drill hole records have been located to date
• The acquisition consideration comprises a $1 million cash payment and $1 million worth of CNB shares to private company Integrated Global Resource
• Once the purchase is settled, Carnaby plans to undertake a reverse circulation and diamond drilling program to assess Mount Hope’s potential
• Company shares are up 2.56 per cent and are trading at $1.40

Carnaby Resources (CNB) has acquired a new mining lease, located nine kilometres from its Lady Fanny and Nil Desperandum copper-gold discoveries in the Mt Isa region of Queensland.

The Mount Hope mining lease is one-kilometre long and 500 metres wide and is hosted within the Argylla Group rocks which also host the Nil Desperandum and Lady Fanny mineralisation.

Mount Hope also lies within the same north-northeast trending iron oxide copper-gold (IOCG) structural corridor as shown by a series of historical copper gold workings between Lady Fanny and Mount Hope.

Mount Hope was discovered at the turn of the 20th century and mined from the early 1900s with main production occurring in the late 1960s to early 1970s. Total historical
recorded production at Mount Hope was 322,000 tonnes at 2.1 per cent copper.

Open pit mining at the deposit was predominantly from three main, very shallow pits known as Mount Hope, Mount Hope North and Binna Binna.

Similar to Lady Fanny before Carnaby commenced a maiden program, the Mount Hope deposit has little recorded historical exploration and no verifiable or publicly available drill hole records have been located to date.

Managing Director Rob Watkins said Mount Hope is a “highly accretive acquisition” and complements the rapidly growing Greater Duchess copper-gold project.

“The similarities to Lady Fanny prior to Carnaby’s first drilling campaign there are striking. It is hard to believe that an exploration opportunity like this still exists in the Mt Isa region today,” Mr Watkins said.

Carnaby Resources will pay private company Integrated Global Resource $1 million in cash and $1 million worth of shares subject to a 12-month escrow period.

Once the acquisition is settled, Carnaby plans to undertake a maiden reverse circulation and diamond drilling program to assess the scale, geometry and magnitude of the mineralised zones at Mount Hope.

Company shares were up 2.56 per cent to trade at $1.40 at 11:35 am AEST.