Next up, we have Peter Bowler from Carnaby Resources. He is the Non-Executive Chairman. Mr. Peter Bowler is an experienced mining executive, having previously been the founding Managing Director of Beadell Resources and prior to that, founding Managing Director of Agincourt Resources. He is now the founding Non-Executive Chairman of Carnaby Resources, which, due to ongoing exploration success in the Mount Isa region, is pursuing the rapid development of the Greater Duchess Copper Gold Project. Thank you, Peter.
Good on you, Cameron. Thanks very much for that. Welcome everybody. Just before we start, I would like to genuinely thank Sharon and Miles for continuing to have faith in our little team from Carnaby Resources . Thanks very much for the speaking spot. It's much appreciated. I think the theme of today, unlike Tony, that's got a, you know, obviously a lot bigger company. Our theme, my recurring theme through this, is clean, fresh, and new. Clean, clean copper cone. Everything's clean. The whole deposit's brand new. We're fresh, we're small, and we're nimble. There it is there. We've got very few shares on issue still. We've only got 220 million shares on issue. We actually pride ourselves on that. Everything's got to be tight to minimize dilution to shareholders. Share price is something which we're not proud of at all, but it is what it is.
The market usually gets it about right at the stage you are at the moment. We are in between scoping and a feasibility study. There's always this sort of hesitation about how good is it going to be between scoping and feasibility. We understand all that. We've got cash in the bank. There is not going to be any more dilution for shareholders until they know exactly what's going on. Market cap of $90 million. I think you'll find as we go through it, it's a fairly compelling story. The board and management, which I'm part of, we own nearly 10%. This team has come, as Cameron alluded to, right through from Agincourt Resources to Beadell and now to Carnaby, A, B, C. We'll move on. We are very well supported. We do appreciate that for a little company like us that's now in a development stage.
Keep in mind, we're only explorers only a year ago to have Euroz, Macquarie, Petra, and just recently Moelis to join us as analysts. We do very much appreciate that. The copper, I won't talk about this. I mean, it's up to you blokes to make up your mind about copper and what you think about it all. It has been the perennial disappointment, just like uranium was when I had a uranium company 15- 20 years ago as far as price. I mean, all the forecasts are saying there's going to be a supply shortage. I will leave that to the experts. Needless to say, in the Australian copper space, now that Ausmelt m inerals is gone, they are now MAC is gone. You know, MAC was the ones that bought out Cobar. They're sort of falling like nine pins.
There is a case for this Mount Isa has to be for consolidation of the district. As far as Glencore goes, we've got a very, very tight relationship with Glencore. Rest assured, we will be mining ore by this time next year. It will be going up to Mount Isa to be processed. We've got a tolling arrangement with Glencore. If for whatever reason it doesn't go to plan, it's up to Glencore to find another home for the processing. As you all know in this room, Glencore are interested in one thing, and that's [copper]. They're particularly interested in our [copper] because it's clean. It's one of the cleanest [coppers] you can get. Anyone in the world, whether it be Trafigura or Glencore, are yearning for good, clean [copper] in a jurisdiction that's tier one.
We think once we start producing this time next year, we have to get a rewrite because that's just the way it is. Everybody knows, unless you're, which is fair, unless you're turning in a positive cash flow, you're not going to get the attention which management always thinks they deserve. The Greater Duchess, this is where we are. Now, this is an important slide. We're only 70 km south of Mount Isa. It's a great jurisdiction. We're headquartered at the Duchess Pub. The Duchess Pub, if there's any grey nomads there, you really need to call in the Duchess Pub on your way around Australia. It's this idyllic situation with these big breakaways in the background. It was built in World War I to support a big copper mine there by the British to provide copper for the armaments to beat the Jerry's.
We've come from nowhere to having now 400,000 tons of high quality copper, high quality copper equivalent in our resources. It is just the beginning, and you'll see why. We'll go through it very quickly. Our real breakthrough, there's been quite a few breakthroughs in the last 6- 12 months. The biggest one was buying the Trekelano, semi-developed because Barrick had to stop mining it in 2009 because they ran out of mining lease space. If you know how the Queensland government works with mining approvals, it is proper slow. They had to cease, but that's all been resolved. Now you'll see when we start mining Trekelano, which will definitely be our first project off the rank, we go straight into some really, really nice ore from a very, very quick cutback.
The reason is, Tony, I mean, everyone talks about what their advantage is, and I'll tell you what ours is, is the competency of the rock. When it's underground, it's all about minimizing dilution. With open-pit, it's all about the actual competency of the walls. Unlike, you know, because as you all know, I've mined from here up to Wiluna, and I know what this green belt's like as far as open cuts. Queensland is different. We're going to have vertical walls with a bench similar to Sunrise Dam. That's one of the steepest pits I've ever seen. It was very rare, and we're very fortunate. Fortune favors the brave and the plates that are prepared to back themselves. We really worked on Trekelano. We knew that would give us that 20,000 oz a year reliable copper production with clean [copper], which was what everybody wants.
It is on a granted mining lease. There's no need like the other deposits we've got to have brand new mining leases or move them around because this is already done, ready to go. The Queensland government is obviously really, really supportive to try and get some ore up to Mount Isa to help out the whole Glencore, Queensland government story. The open cut now, because before Trekelano, we only had two and a half years of open cut into underground. I don't like underground mining. I think there's a lot of people in this room that are always wary of underground mining. Now Trekelano is just a no-brainer open cut. We'll have over 20,000 ton a year of copper for the first five or six years of open cut. No CapEx. No CapEx. This is the important thing.
The Trekelano opposition, and I think rather than point to it, if you look at that blue ML90183 on the right-hand side there on that photo, that's exactly what I'm talking about. That's the reason why this is going to add a lot of NPV onto the story, just because of that one slither of dirt that Barrick couldn't mine when they shut up in 2009. It's 5.2 million tons at this stage at 1.6% copper, sorry, yeah, 1% copper equivalent for 85,000 tons. It's the ease of the mining and the lack of controversy. Clean, fresh, and new. That's what this is all about. This is exactly what I'm talking about. You blokes will appreciate this. At the bottom of the pit, it's cherry ripe, ready to go, is at 93 m at 3.3%, 93 m at 6.2%. All of that will come out in a pit.
You know, it's got a lot of gold in it as well. Obviously, everyone wants to talk about gold. This is a copper story. Those intersections at the bottom of a pit, ready to go. You think, oh yeah, but how much is your strip ratio? It's going to be high strip ratio because the grades are so high, but the walls are going to be so, so steep. That's our competitive advantage. 93 m at 3.3%, as I said, 128 m at 2%. They are quite spectacular in the copper space. You can see, if you look at the old pit outline in the right-hand diagram, you can just see how, and I know the eye, a steep pit always looks quite not steep when you look at it in a cross section, but even that pit looks steep, the old pit. That's that scoping study one.
Don't worry about that. That's just an outline for our scoping study. We now have got all the geotech work done. It's going to be steeper than that, which means less waste, more ore. That's exactly what I'm talking about. There you go. That tells a picture, tells a thousand words. That's the inheritance pit that was finished by Barrick in 2009. You can see the pit on the right-hand side, the wall on the right-hand side, that had to stop because they ran out of real estate on the right-hand side. You can see when it's disappearing into the water, it is almost vertical. Just to the north, I mean, this is obviously, as a non-GEO, this is the thing that got me most excited. This was an old World War I underground.
Obviously, there was all sharps and underground prior to the dump trucks coming in the 1980s or the 1960s. Have a look at those at the bottom of the underground on the historic underground mine. You've got 8 m at 13%, 8 m at 4%, 17 m at 8%, 15 m at 5%. It goes on. Never been drilled underneath. Ever been drilled. New, fresh, and clean. Mount Hope. Mount Hope is an extraordinary story. This was, once again, you know, the reason we are going to be successful is because everything we bought here have accumulated. It's been really tough. The people we've dealt with have been tough, firm, but maybe not so fair. It's all coming together now. We own 100% of everything I talk about. As from this week, there were joint venture partners on our country to the south. We're all 100% now. Mount Hope, 100%.
This was obviously Rob Watkins. I do apologize for me speaking rather than Rob. Our Managing Director is doing an excellent job, but he's had to stay in Perth because he's got a family illness happening. Apologies for you having to endure me up here. This was the one that Rob was most keen on. I mean, it's turned into nothing, zero drilling, zero drilling ever in the history of mankind to 173,000 ton of copper at 1.7% copper equivalent. Quite a spectacular result for Rob and his small geological team. When I say Carnaby's small, I mean really small. There's only six of us. This is what we've done in a very short period of time. You can see how old these deposits are by the names, can't you? There's no way anyone would be allowed to call two deposits Lady Fanny and Burke and Wills.
These were obviously old prospectors, you know, [80] to in the 1930s or whatever. Burke and Wills, I mean, I'm a bit of a history buff with stations to the south, and I'm intrigued because this is one of the places where Burke and Wills camped on their way up to the Gulf. They ultimately died on their way back, but to just put that to one side. It is quite fascinating, isn't it? In 1865, they actually camped where this deposit is. Burke and Wills deposit, very small, very discreet, very profitable, really high grades, stripping ratio, bugger all. That's going to be one of the very first ones. Lady Fanny as well, never a drill hole in it, no recorded drilling prior to Carnaby. Now we've got some really profitable two open pits there. Clean, fresh, and new. Nil Desperandum, this was our discovery.
I was into gold and we had deposits north of [Hemi], and I didn't like copper, and I voted in the board meeting not to do any copper exploration. That's how much I know about it. This was at 41 m at 4%. We went up to $1.50 or $1.60 on that. I mean, that's good. That's once again, that's a very high grade deposit, but small, and it's open at depth. That's an underground proposition more than anything. We won't get, all we're interested in is margins. I think there's been a lot of talk about margins, and that's what we're into. Project development, I better hurry up now. The pre-feasibility study is in progress. You blokes don't need to worry about the word "pre" because we're such a small group of people. We will go from pre-phase, looks good, feasibility, yep, that's done, financial investment decision done.
We plan on producing the first ore out of Trekelano as close to June next year as we can, subject to only one thing: government approvals. The government have promised us that they're going to approve it very, very quickly. As you can see, this NPV of $437 million is without Trekelano, 7% discount rate, IRR 141%. Trekelano is going to give us 20,000+ a year for the next 10 years, open cut for the first five years. This is a very unique thing where we're going to rail the ore from the Duchess Pub up to Mount Isa. Not many people have the nine ore coal rail ore. It's obvious, you just got to use it. Huge amount of support from the Queensland government to make it happen. There's the Gantt chart. I won't go into it too much, but there it is.
Production, obviously, Rob's a little bit more conservative than me. He's saying in the third quarter of next calendar year, I'm saying by the 30th of June. Investment highlights, fellas: in a very short time, we've got 400,000 tons of some of the best copper in Australia at 1.5%. We've got binding tolling offtake agreements with Glencore. Glencore is who they are, they're one of the biggest commodity traders in the world. It's interesting, we've got on with them very well because we've got something which they really, really like, which is clean, unencumbered [copper] in a tier one country. 400,000 tons, that's just the start. All of those ore bodies, especially Trekelano, completely open. Rob is obviously, if he was here, he'd have a big section on exploration. I'm not an exploration GEO, I'm just a busted ass cocky.
All I can say is that everybody that comes to our booth that is a GEO is most excited by our exploration upside. Thank you very much.