Carnaby Resources (ASX:CNB) delivered "excellent" drilling results from a new Footwall lode at its Greater Duchess copper-gold project in Queensland, materially improving the resource potential at the Trek 1 prospect, Euroz Hartleys said in a Thursday note.
The results included intercepts of 19 meters at 7.1% grade of copper-equivalent, including 4.4% grade of copper and 3.1 grams per tonne grade of gold, from 256 meters, as well as 16 meters at 2.4% grade of copper-equivalent, including 2% grade of copper and 0.5 g/t grade of gold, from 197 meters.
The deposit is open up-dip toward the existing Trek 1 ore reserve pit and needs further drilling to confirm the results. "There is potential for meaningful pit shell growth and higher ore reserve inventories," if the deposit is confirmed up-dip, the equity research firm said.
"We note recent drilling continues to define consistent, high-grade copper-gold mineralization at depth, which in our view materially strengthens the long-term production profile of Greater Duchess," Euroz Hartleys added.
The investment firm maintains a speculative buy recommendation on Carnaby Resources with a price target of AU$0.96 per share, saying the company continues to be undervalued relative to its peers and production potential.