Carnaby Resources (ASX:CNB) delivered a pre-feasibility study (PFS) for its Great Duchess copper-gold project that highlights low capital expenditure, solid free cash flow (FCF) potential, and a near-term pathway to production, said Euroz Hartleys in a Monday note.

The PFS includes the Trekelano project and showed a maiden ore reserve of 8.4 million tonnes with a grade of 1.9% copper equivalent, evenly divided between open-pit and underground deposits.

The company plans to produce 17,000 tonnes of copper equivalent per year over eight years at an all-in sustaining cost of AU$4.35 per pound, with capital expenditures of AU$24 million and post-tax FCF around AU$50 million.

The firm noted that with a market capitalization of around AU$120 million, the company is a near-term copper developer leveraging existing infrastructure.

The firm highlighted strong exploration potential at the Trek-1 and Trek-2 deposits, which remain open at depth, and warned that the company could be a takeover target if the market overlooks its near-term production prospects.

Euroz Hartleys kept a speculative buy rating on Carnaby Resources with a price target of AU$0.80 under review.

Carnaby Resources' shares jumped 10% in recent Monday trade.