Carnaby Resources Limited announced excellent initial metallurgical test work results from the Nil Desperandum and Lady Fanny copper gold discoveries at the Greater Duchess Copper Gold Project in Mt Isa, Queensland. Highlights: Excellent copper recoveries of 98 to 99%; Nil Desperandum Composite 97.7% to 99.1%, Lady Fanny Composite 99.0% to 99.4%. High gold recoveries of 80 to 89%; Nil Desperandum Composite 80.1% to 87.2%, Lady Fanny Composite 82.9% to 88.7%.

Excellent kinetics at 150 and 75 micron; >90% of copper floated in less than 2 minutes, >98% of copper floated within 7 minutes. Extremely clean copper gold concentrate; No material deleterious elements detected. Recleaner concentrate grades of; 23.2% copper concentrate at 98% copper recovery from the Nil Desperandum composite, 17.3% copper concentrate at 99% copper recovery from the Lady Fanny composite.

Initial test work has highlighted further concentrate improvements likely by increasing pH and using a selective copper sulphide collector. Australian Minmet Metallurgical Laboratories (AMML) was contracted by Carnaby to complete the first pass flotation study on two composites, one 31 kg sample (LMFT001) from Lady Fanny diamond core and a 43 kg composite (NDMT001) from Nil Desperandum diamond core. A head sample was riffle split from one of the portions, pulverised and sent to ALS in Brisbane for chemical analysis.

Flotation was completed at the two different grind sizes, utilizing PAX as the collector and MIBC as the frother. The collector was stage added with an initial dose of 40 g/t, floated for 2 minutes (two separate concentrates), a subsequent 20 g/t PAX was dosed and floated for a further 5 minutes before a final 20 g/t of PAX was added and then floated for a further 10 minutes. The kinetic results of the rougher tests at 150 and 75 micron.

The copper minerals floated quickly with greater than 90% of the copper having floated in the first two minutes (first two staged concentrates). The finer grind size at a P80 of 75 micron had a very marginally quicker float response compared to that of the 150 micron. The next stage with a total flotation time of 7 minutes brought the recovery up to ~ 99% copper for both samples.

The preliminary test work results are considered to be very encouraging. Additional recommendations in future test work to improve concentrate product grades include flotation with a selective copper sulphide collector (IPET) and utilising an elevated pH (roughing and/or cleaning) to reduce the flotation of iron sulphides. The metallurgical test work completed and reported represents only the first scoping level stage.

More extensive metallurgical studies will be completed in the future. The samples selected for the flotation test work are considered to represent a core fresh rock section through each deposit, without being an extensive sampling program through the whole deposit. No oxide or transitional metallurgical testing was completed in the first pass metallurgical analysis because the oxide /transitional at both Nil Desperandum and Lady Fanny is very shallow (~10m) and is considered to form only a minor amount of a future Mineral Resource with the bulk of mineralisation hosted in fresh rock.

Future studies will also test oxide and transition characteristics.