Cannindah Resources Advances Mt Cannindah with $5M Raise and Drilling Progress

Capital Raise Fuels Exploration Momentum

Cannindah Resources Limited successfully closed a $5 million capital raise in late October 2024, targeting institutional and sophisticated investors. This funding injection was earmarked for advancing exploration and supporting working capital needs at the Mt Cannindah copper-gold project in Queensland. The prompt arrival of drill rigs by late November signalled the company’s swift transition from financing to field activity.

Drilling Progress and Geological Insights

Drilling commenced in early December 2024 with hole 24 targeting the Southern Breccia Anomaly, a key geophysical feature identified through Induced Polarisation (IP) surveys. Initial challenges due to fractured ground delayed progress, but post-Christmas efforts saw the hole reach approximately 400 metres depth by the end of the quarter. The hole has intersected extensive sulphidic breccia zones containing 1-5% sulphide mineralisation, mainly chalcopyrite and pyrite, consistent with mineralisation styles within the existing Mineral Resource Estimate (MRE).

Resource Upgrade Underpins Exploration Strategy

Earlier in July 2024, Cannindah announced a substantial upgrade to its Mt Cannindah resource, with copper metal tonnes increasing by 117% and overall tonnage rising by 183% at a 0.3% copper equivalent cutoff. The current drilling program aims to extend this resource, with future holes planned to test additional IP anomalies southwest and northwest of the known resource area. The MRE assumes open-pit extraction to a depth of 350 metres, but mineralisation remains open at depth and along strike, suggesting further upside potential.

Financial and Corporate Developments

Exploration and evaluation expenditure for the quarter totalled $820,000, reflecting active fieldwork and technical studies. Payments to related parties amounted to $849,000, covering geological, legal, accounting services, and directors’ fees, including a $1 million invoice settlement via shares to Terra Search, associated with Director Simon Beams. The company’s cash position remains robust with $3.29 million in cash and equivalents at quarter-end, supported by the recent capital raise.

Outlook and Market Positioning

Cannindah Resources continues to engage in commercial discussions, notably with Codelco, which is conducting due diligence on the project. While no definitive outcomes have been announced, this interest underscores the strategic value of Mt Cannindah. The company’s methodical approach to resource expansion, combined with solid financial backing, positions it well to advance towards development decisions in the medium term.