Cannindah Resources has reported significant diamond drilling results at its Mt Cannindah project, including high-grade gold intercepts and the identification of a large new porphyry copper-gold-molybdenum target, alongside strategic board and management appointments.
- Diamond drilling returned 71m @ 0.95% CuEq and 1m @ 31.07 g/t Au intercepts
- New Southern Porphyry Target identified with strong copper and molybdenum soil anomalies
- Pending assay results from drillholes CAE025 and CAE026 targeting key IP anomalies
- Board strengthened with appointments of John Morrison and Tony Rovira
- Exploration expenditure of $1.29 million; company maintains $1.56 million cash balance
Exploration Progress and High-Grade Intercepts
Cannindah Resources Limited (ASX: CAE) has delivered a robust quarterly update for the period ending 31 March 2025, highlighting ongoing diamond drilling success at the Mt Cannindah copper-gold project in Queensland. The company completed 1,024 metres of diamond drilling, including the completion of drillholes CAE024, CAE025, and CAE026, with CAE027 underway targeting a high-order IP anomaly.
Drillhole CAE024 notably intersected a broad mineralised zone of 274 metres at 0.49% copper equivalent (CuEq), including a higher-grade interval of 71 metres at 0.95% CuEq. Within this, a remarkable high-grade gold intercept was recorded: 1 metre at 31.07 grams per tonne (g/t) gold, alongside another 1 metre at 5.14 g/t Au. This discovery underscores the potential for significant gold enrichment within the Cannindah Breccia system, supported by a review of historic drilling data revealing similar high-grade gold vein styles.
Emergence of a Large Porphyry Target
Beyond the immediate resource extensions, Cannindah has identified a compelling new exploration frontier: the Southern Porphyry Target. Soil geochemistry data reveals a coherent 500 by 300 metre zone exhibiting copper concentrations exceeding 1000 ppm, corroborated by molybdenum anomalies and classic porphyry-style veining observed in outcrop. This target area, encompassing the Monument, Lifesaver, and Dunno prospects, suggests a sizeable hydrothermal system with potential for a step-change in metal inventory.
Historical shallow drilling in this zone has returned anomalous copper and molybdenum values, though deeper drilling intersected barren intrusive rocks, indicating the need for further targeted exploration. Cannindah has commenced systematic rock chip sampling and geochemical validation to refine this priority target ahead of planned drilling.
Pending Assays and Strategic Appointments
Assay results remain pending for drillholes CAE025 and CAE026, which targeted northwest and southern breccia extensions respectively, both showing encouraging geological signs such as sulphides and brecciation. The ongoing CAE027 drillhole targets a high-order southwest IP anomaly, building on the success of IP geophysics in delineating mineralisation at Mt Cannindah.
On the corporate front, Cannindah has bolstered its leadership with the appointments of John Morrison and Tony Rovira as Non-Executive Directors, bringing extensive mining and investment expertise. Cameron Switzer has joined as Exploration Manager and Technical Advisor, tasked with advancing exploration efforts at Mt Cannindah.
Financial Position and Outlook
The company reported exploration and evaluation expenditure of $1.29 million for the quarter, with no production activities as it remains in the exploration phase. Cannindah ended the quarter with $1.56 million in cash, down from $3.29 million previously, reflecting ongoing investment in drilling and sampling programs. Management anticipates the need for additional funding to sustain and expand exploration activities, with plans for capital raisings or loan facilities under consideration.
Managing Director Tom Pickett emphasised the scale and potential of the Mt Cannindah project, noting the Southern Porphyry Target as a possible game-changer in terms of resource size and metal content. The company’s methodical approach, combining geophysics, geochemistry, and drilling, aims to rapidly evaluate and prioritise targets to unlock value.
Bottom Line?
Cannindah’s expanding footprint and new porphyry target set the stage for a pivotal exploration phase, with upcoming assay results and funding strategies critical to watch.
Questions in the middle?
- What will the assay results from drillholes CAE025 and CAE026 reveal about resource extensions?
- How will Cannindah finance its ambitious exploration plans beyond current cash reserves?
- Can the Southern Porphyry Target deliver a significant resource upgrade comparable to global porphyry deposits?