From a newsletter******smart.com.auCarnabyResources (ASX:...

From a newsletter
******smart.com.au

CarnabyResources (ASX: CNB)

Copper isthe key to Carnaby, a small explorer with its foot on something potentially bigin the home of Australian copper, Mt Isa.

A series ofdiscoveries around the city in north-west Queensland first caught the eye ofinvestors in late 2021 when Carnaby reported a highly encouraging drill hit of41 metres assaying 4.1 per cent copper.

Despite itsamusing Latin name, Nil Desperandum (“Do Not Despair”) the discovery, just 70kilometres from Mt Isa, was a “seven-bagger” for Carnaby shareholders, boostingthe price from 27c to $2.03, a seven-fold increase in three-months.

Since then,Carnaby has continued to make discoveries in an ideal location, including lastweek’s report of a 28m intersection assaying 2.4 per cent copper at the Mt HopeCentral prospect to the north of Nil Desperandum.

In betweenthe Mt Hope discovery and just three kilometres from Nil Desperandum, Carnabymade a discovery at Lady Fanny with assays up to 68m at 2.4 per cent copper.

Stitchingmultiple discoveries into a commercial mine plan is now the challenge forCarnaby but aiding its efforts are a strong copper price and a global rush forcopper projects as seen in BHP’s acquisition of OZ Minerals and last week’s bidby Glencore for Canada’s Teck Resources.

MacquarieBank likes Carnaby and the way in which it continues to make discoveries,steadily expanding its potential project footprint with a maiden resourceannouncement expected in June, which is likely to be a catalyst for a shareprice re-rating.

On themarket, Carnaby is trading at around $1.25 having risen by 31c since the startof the year. Macquarie reckons the stock is on track to reach a target price of$1.70.