CNB Summary and Why Its So Undervalued, page-1577

Very incomplete, but I will post what I have so far (any idea's / constructive critisim appreciated)

CNB and Why it isSTILL UNDERVALUED

“TransformingCarnaby from a Junior Explorer into a Gold Producer”

For my own personal benefit, I have decided to write up a completeSummary of CNB (Carnaby Resources) in order to help me betterunderstand the company I have invested a lot of my hard money into. Iam not a professional investor, nor am I a Geologist. There is a lotof jargon to decipher, a lot of maths to calculate and just too muchinformation causing “Analysis Paralysis”, so it is withthis summary that I can hopefully have all my research here in oneplace under one roof, outlined in a format that I can easily follow,and in words that I can understand

And a big thanks to the great contributors of the CNB thread whoseextensive research has made this possible...(@name @gottalove @bond00what) just to name a few

So whatis CNB and what does it do?

Carnaby ResourcesLimited (ASX: CNB) is an Australian exploration and developmentcompany focused on gold and copper projects in the Mallina Basin andYilgarn Margin of Western Australia and the Mt Isa Inlier ofQueensland.

Mt Isa Inlier(Tick Hill):

The Tick Hill GoldProject near Mount Isa was one of Australia’s highest gradeand most profitable gold deposits ever mined in Australia's recentgold producing history, producing 511,000 ounces at 22.5grams per tonne between 1991 and 1995 byCarpentaria Gold Pty Ltd (a subsidiary of MIM Holdings Limited)before faulting off at 235 m below the surface (Production between1991-95 generated $150-200 Million for MIM at gold price of US350oz). TODAY, at time of writing, the price of gold is roughly US1900oz which is 5 /12 times more. At even a profit of $150 Mil backin 91-95, that would equate to profits of 825 Million for Carnabytoday!!

“TheTick Hill Gold Project near Mount Isa, Queensland has one of thehighest grade gold deposits in Australia’s recent gold producinghistory”.

InApril 2019, Carnaby (formerly known as ASX-listed Berkut MineralsLimited ASX:BMT) purchases Tick Hill Gold Mine from DiatremeResources (DRX).

TheTick Hill Gold mine consists of:

• Tick Hill Open Pit Ore Reserves (The Mine) of 48,600 tonnes @ 6.53 g/t for 10,200 ounces (Based on recently completed pre-feasibility study (refer ASX Ann 05 June 2020) This pit is only 70 meters deep, and produced 180,000 oz @ 18 grams, and Rob plans to cut back the pit, do a 40 meter depth extension of the pit AND re-process the tailings dam)
  
  

• A Tailings Dam ( in which tailings were discharged into during 91-95 production) comprising two paddocks of a “turkeys nest” construction in which a perimeter embankment with a clay core retains tailings. Wall heights range from 6m to 10.5m. (In plain English, the tailings dam was a place or “earth fill” to store the byproducts of mining operations 1991-1995 after separating the ore (gold) from the gangue, which is basically commercially worthless materials surrounding the gold). This will be removed at “no capital costs” under the new sale agreement with BIM Metals Pty Ltd (BIM) (see ASX release 3 August 2020). Not only does CNB NOT incur any costs, CNB will receive about $6 Million in total from BIM's extraction of the historical tailings dam stockpiles at Tick Hill (The amendment to the Tick Hill mining lease permit has been approved). So in plain English, CNB is getting paid $6 million to get rid of our 25 year old completely dry rubbish which still contains some gold, giving us money to mine the pit).
  
  
  

Sobasically, based on the PFS, the Open Pit and the Tailings DamStockpile together over the next 13 months can produce almost HalfMillion ton @ 2.0 grams for a total of 30,300 Ounces for a potentialNet Pre-Tax Cash flow of $25.6 million based on A$2450/oz … As ofwriting today (14/10/20), the gold price is A$2,648.72, which would equate to $27.7 Million As Rob said “This is aexceptional project”!

KeyMilestones to gold production in 2020 (as above)

• Come to commercial terms on a tol treatment agreement with 3^rd party owners of processing facilities & contract miners (Tailing Dams Extraction Agreement with BIM Complete) – How about for the production of Gold from the Open Pit? “We are well down that road to forming that agreement” … Rob.

• Government regulatory amendments (DONE) – See ANN 12 October. “Carnaby Resources Limited (ASX: CNB) (Carnaby or the Company) is pleased to announce that the amendment to the Tick Hill mining lease permit has been approved for the extraction of the historical tailings dam stockpiles”

RobWatkins said, “TickHill has not benefited from any modern exploration techniques andthis [acquisition] provides an opportunity to revitalise one ofAustralia’s highest-grade gold mines in an exceptional miningjurisdiction and location.”

Recent Placement and SPP proceeds will be used to scale up andaccelerate

• Drilling at the Tick Hill Project in Queensland, targeting Tick Hill North and North Pit Wall commencing in early November 2020;

• And Development Options for the Tick Hill Open Pit (as explained above)

So, to commence inNovember 2020, Drilling at the Tick Hill Project in Queensland,targeting Tick Hill North and North Pit Wall HUGE POTENTIAL !!

* At the time of thepresentation, the 'follow up drilling is being planned'... As of themost recent Ann 12 October, drilling is to commence inNovember 2020 Yayyyyyy

Good presentation to watchif you haven't yet : Clickhere .

And don't forget the TickHill Copper Project:

“We have asignificant series of IOCG Copper rich Deposits that we will developin the future”!! “When copper prices recover”

• Exceptional results from Mount Ernie so “There is no doubt an Open Pit is expected to be developed here and potentially and underground as well” Rob...

• “But the copper is something for the future and we are firm believers that the copper projects will, in the not to distant future, these copper projects will cover”... “We are getting prepared for that” ...

OK, that's onlyTick Hill!!

Pilbara(Maillina Basin) Projects:

CNB'sPilbara Gold projects comprise the Strelley Gold Project and theMount Grant Gold Project (total ground holdings of 254 km2) which arelocated in the highly prospective Mallina Basin of Western Australia,northeast of the Hemi gold discovery of De Grey Mining Ltd (ASXEG), which has taken DEG to a MC in excess of 1$ Billion. This isAustralia’s newest major and under explored gold district.

1. 1. 1. Strelley Project (100% owned by CNB)

• • • The Company has identified the following four prospects at Strelley: Palisade Prospect, Gibraltar Prospect, Stockade Prospect, Conwy Prospect.

    • Recent Placement and SPP proceeds will be used to scale up and accelerate Exploration drilling at the Strelley Project where a maiden 8,500 m (400 hole) aircore drilling program will commence in October 2020 immediately followed by a 3,500 m RC drilling program;

1. 1. 1. Mount Grant Project (80% owned by CNB)

         1. 1. Mount Grant is located approximately 20km East of the Company’s Strelley Gold Project and approximately 90 km northeast of the Hemi gold discovery of De Grey Mining Ltd (ASX: DEG).

Inaddition to its Tick Hill and Strelley land holdings (alhtough of notmuch significance at the moment) the Company holds a further972km2 gold prospective exploration package in the YligarnMargin, which contain the Company’s Malmac and Throssel projects.

ThrosselGold Project (100%)

TheThrossel Gold Project covers 162 km2 and is located 70 km northof the 6.2 Moz Gruyere Gold Mine operated by Gold Road Resources Ltd(ASX: GOR). The project area covers a potential 20 km strike ofunexplored greenstone belt under shallow cover.

MalmacGold Project (100%)

TheMalmac Gold Project covers 810 km2 within the northern Yilgarnmargin mobile belt. The tenements are focussed on the Imbinrift associated with the highly mineralised Glenburgh Orogen withhost rocks similar in age and geology to the Karalundi Formation thathost Sandfire Resources Ltd’s (ASX: SFR) Degrussa deposit.

Chapter 2:Management's Composition / Background & “Skin in the Game” (To be continued)

Chapter 3:CNB's Current Financial Position & Potential for Future Growth ((To be continued)

Chapter 4 / 5//6: You have any idea's? (To be continued)

•