MRE guesstimate, page-75

From DCX quarterly this AM
Again not much new here

DiscovEx announced that it had recently written to Carnaby Resources Limited (ASX:CNB)
requesting that a formal joint venture agreement (JVA) be entered into, in regard to the Greater
Duchess Joint Venture in the Mt Isa region of Queensland, consistent with the terms of the Heads
of Agreement dated 11 March 2019 between DiscovEx and Carnaby (HoA), with the terms of the
JVA to reflect that the area of EPM14366 amalgamated with two expired mining leases, ML5400
and ML90015 (Mining Leases), which cover the Lady Fanny Prospect area, are subject to the JVA.
Carnaby asserts that it owns 100% of the two expired Mining Lease areas which cover the Lady
Fanny Prospect, and which were amalgamated into JV tenement EPM14366. Prior to the
amalgamation with EPM14366, Carnaby did not have an interest in the area of the Mining Leases.
DiscovEx’s position under the HoA, supported by digital records from the Queensland
Department of Resources, is that EPM14366 is held by DiscovEx and Carnaby in accordance with
their joint venture interests. Therefore, DiscovEx continues to hold a 17.5% legal and beneficial
interest (free-carried until a decision to mine) in the whole of EPM14366 (with Carnaby holding
an 82.5% interest), including the area of the Lady Fanny Prospect situated within EPM14366.
Figure 7: DiscovEx tenement interests in Queensland within Carnaby Resources Ltd and Hammer Metals Ltd.
1. Refer Hammer Metals announcement dated the 27th September 2016 (Kalman Resource Update).
2. Forrestal P.J. et al, 1998 (Tick Hill Gold Deposit).
3. Blake D.H. et al, 1994 BMR Bulletin 219
The Greater Duchess Project includes the Southern Hub Tenements, located in the Mt. Isa Region
of Queensland, where DiscovEx holds a 17.5% free-carried interest in EPM 9083, EPM 11013,
EPM 14366, EPM 14369, EPM 17637, EPM 18223, EPM 18990, EPM 19008, EPM 25435, EPM
25439, EPM 25853, EPM 25972. Carnaby are required to solely fund all costs in connection with
the activities of the JV, inclusive of exploration and development until a Decision to Mine
(“DTM”).
Following the presentation to the JV committee of a positive Definitive Feasibility Study (“DFS”)
and a DTM is made, Carnaby will have a first right of refusal to acquire DiscovEx’s interest, equal
to the fair market value. If Carnaby does not elect to acquire this interest, DCX may either