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. Greater Duchess Copper Gold Project: 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 are displayed for both samples.

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.

Two stage cleaner tests were then completed at the P80 75 micron with the results displayed. Cleaning proved effective at improving grade with minor losses of copper recovery. For NDMT001 a recleaner concentrate of 23.2% copper at 98% copper recovery was obtained.

For LMFT001 a recleaner concentrate of 17.3% copper at 99% recovery was obtained. 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 test work also highlighted high gold recovery into the recleaner copper concentrate for both samples which may indicate an association between the copper bearing minerals and the gold present in the sample. A good correlation of gold recovery versus copper recovery is shown. 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 (approx.

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.