Carnaby Resources Share Price Up as the Strelley Project Gets Underway

Carnaby Resources Share Price Up as the Strelley Project Gets Underway

Perth-based mineral exploration company Carnaby Resources Ltd [ASX:CNB] is up today as anticipation builds following the commencement of drilling the Strelley Project in the Pilbara.

ASX CNB Share Price Chart

Source: Tradingview

CNB has made some solid gains over the last few months thanks to the acquisition of some decent tenements and delivering a maiden ore reserve at its Tick Hill Project.

The share price also rose rapidly last week as investors responded positively to CNB’s latest round of equity raising and approval for the extraction of the historical tailings at Tick Hill.

At time of writing the CNB share price is up 3.5 cents or 8.24% to trade at 46 cents per share.

Historic drilling hints at Strelley potential

Today CNB announced the commencement of a 400-hole, 8,500-metre drilling program at its 100% owned Strelley Project in the Mallina Basin, located in the Pilbara.

Gold exploration at the project has been dormant for 12 years, according to CNB.

The structural and stratigraphic setting of Strelley is not dissimilar to the large Hemi gold discovery by De Grey Mining Ltd [ASX:DEG].

Perhaps that’s what has caused the excitement this morning.

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Carnaby Resources Gold Soil Anomalies

Source: Carnaby Resources

Soil sampling has returned some promising and large targets.

The Palisade Prospect (7km-long) and Conwy Prospect (5km-long) being the two largest.

Historic drilling at the Gibraltar Prospect returned drill results up to 10 metres at 1.6 g/t gold including two metres at 5.7 g/t gold.

With plenty of targets, CNB seem keen to get to work.

The explorer said results from initial drilling will be prioritised and will be immediately followed up by a second drill rig.

This rig will initiate a 3,500-metre program for deeper drill testing of the high priority targets starting in mid-November 2020.

Could this be the next De Grey Mining?

DEG has been a standout gold explorer on the ASX this year and progress at its Hemi Project has been progressing nicely.

ASX CNB - Carnaby Resources Gold Project Map

 Source: Carnaby Resources

CNB’s proximity to Hemi could give Strelley’s story similarity credibility.

Although the size of CNB’s tenements may not encompass as much mineral resource as DEG’s.

CNB are also continuing to fill out their Tick Hill gold project in Queensland, with a third drilling rig secured drilling is expected to commence in mid-November 2020.

Tick Hill has a total ore reserve of 459,600t at 1.89 g/t for 28,000 ounces of gold.

CNB Managing Director Rob Watkins commented:

We look forward with high anticipation to completing the maiden Carnaby drilling programs at Strelley in the Mallina Basin of the Pilbara and homing in on the extension of high grade Tick Hill gold deposit in Queensland, both of which have the potential to produce company transforming results.’

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Lachlann Tierney,

For The Daily Reckoning Australia