Cannindah’s New Porphyry Discovery Could Reshape Copper-Gold Prospects—But Drilling Holds the Key
Cannindah Resources has secured $4.5 million through a fully underwritten entitlement offer to accelerate drilling at its Mt Cannindah copper-gold project, unveiling promising new high-grade porphyry targets that could reshape its resource profile.
- Completed $4.5 million fully underwritten entitlement offer
- Discovered new high-grade pencil porphyry target with trench results up to 61m @ 1.08% CuEq
- Commenced a 6,000m drilling program targeting resource extensions and new porphyry zones
- Identified potential 300m southern and 200m northern extensions to Cannindah Breccia resource
- Board changes include appointment of interim CEO and new CFO
Capital Raise Fuels Exploration Momentum
Cannindah Resources Ltd has successfully completed a fully underwritten entitlement offer, raising approximately $4.5 million to fund an ambitious exploration and drilling campaign at its Mt Cannindah copper-gold project in Queensland. The offer was supported by Canaccord Genuity and key board members, underscoring strong internal confidence in the project’s potential.
Expanding the Known Resource
Recent geological reviews and surface mapping have revealed promising extensions to the existing Cannindah Breccia mineral resource estimate (MRE). Notably, potential mineralised breccia zones extend 300 meters south and 200 meters north beyond current resource boundaries. These extensions, previously underexplored, present compelling targets for the ongoing drilling program.
New High-Grade Porphyry Discovery
Perhaps the most exciting development is the identification of a new pencil porphyry target within the Southern Target zone, highlighted by outstanding trench results including a 61-meter intercept grading 1.08% copper equivalent (CuEq). This discovery, at the Appletree-Dunno prospect, features elevated copper, gold, silver, and molybdenum levels over a significant surface area, suggesting a robust mineralised system that has yet to be drill tested.
Drilling Program Underway
The company has commenced a 6,000-meter reverse circulation drilling program designed to test both the extensions of the Cannindah Breccia resource and the newly identified porphyry targets. Initial drilling will focus on seven holes targeting the breccia extensions, followed by scout drilling at the Eastern and Southern porphyry targets, which are supported by geophysical anomalies and historical geochemical data.
Corporate and Financial Position
Alongside exploration progress, Cannindah has undergone key leadership changes with Cameron Switzer appointed as interim CEO and Nathan Rose as CFO. The company ended the quarter with a strong cash position of $3.68 million, providing a solid financial foundation for ongoing exploration activities. Exploration expenditure for the quarter was $127,000, reflecting focused investment in advancing the Mt Cannindah project.
Looking Ahead
With drilling underway and new targets emerging, Cannindah is poised to potentially expand its resource base significantly. The combination of high-grade trench results and strategic capital raising positions the company well to deliver meaningful updates in the coming quarters, as assay results from the drill program become available.
Bottom Line?
Cannindah’s latest capital raise and exploration breakthroughs set the stage for a pivotal phase in unlocking Mt Cannindah’s full potential.
Questions in the middle?
- Will drilling confirm the extent and grade of the newly identified pencil porphyry system?
- How will molybdenum recovery testwork impact the overall project economics?
- What are the timelines and expected milestones for assay results from the current drilling program?