Cannindah Resources has broadened its drilling campaign at the Cannindah Breccia deposit following promising signs of resource expansion, including newly identified mineralised zones extending over 550m beyond the current resource boundary.
- Expanded drilling program with 16 additional holes
- New breccia outcrops mapped 400m south of resource
- Historical drill holes with unsampled mineralisation sent for assay
- Southern Shoot intersection of 94m @ 1.11% CuEq highlights growth
- Updated Mineral Resource Estimate planned post drilling
Expanded Drilling Targets Significant Resource Upside
Cannindah Resources Ltd (ASX:CAE) has ramped up its drilling program at the Cannindah Breccia copper-gold deposit, adding 16 new holes to test promising extensions of its current 14.5 million tonne resource at 1.09% copper equivalent (CuEq). This expansion reflects the company’s confidence in multiple avenues for resource growth, including previously overlooked historical data and newly mapped breccia outcrops extending roughly 400 metres south of the existing mineral resource envelope.
Managing Director Cameron Switzer emphasised the potential for a "significant upsizing" of the Mineral Resource Estimate (MRE), noting that the expanded drilling will provide the critical data needed to reassess the deposit’s scale. Particularly compelling is the identification of mineralised material over an additional 550 metres south of the current resource boundary, based on visual sulphide mineralisation in historical drill holes that were never assayed due to past economic cut-offs.
Southern Shoot Emerges as Key Growth Driver
The Southern Shoot, a recently defined mineralised zone within the breccia, continues to impress with a standout drill intersection of 94 metres at 1.11% CuEq from 178 metres downhole. This zone remains open both along strike and at depth, underscoring its potential to materially lift the resource base. The shoot’s dimensions; exceeding 100 metres in strike length and 200 metres down dip with thickness over 130 metres; highlight a fertile structural corridor that warrants further scout drilling along its entire length.
This development builds on earlier positive results from the Cannindah Breccia, where the company has completed 27 diamond and 24 reverse circulation (RC) holes since 2022. The current drilling phase aims to fill gaps left by incomplete historical assay data, where selective sampling and higher detection limits previously limited the resource model’s accuracy. By providing consistent and comprehensive assay coverage, the program targets a more robust and potentially upgraded MRE.
Historical Data Reappraisal and Assay Campaign
Of particular interest are two historical diamond drill holes located 235 and 550 metres south of the current resource boundary, which contain visible breccia and sulphide mineralisation but were never assayed. These holes, drilled in 1966, have now been submitted for modern assay techniques, potentially unlocking significant extensions to the resource. This reappraisal of legacy data reflects a broader trend in exploration where re-examining historical holes with today's technology can reveal overlooked value.
The Cannindah Breccia deposit itself is hosted on a major NNE-trending faulted contact between intrusive diorite and hornfelsed metasedimentary rocks, with mineralisation extending to depths exceeding 1,000 metres, well beyond the current open pit shell defined to 350 metres. The deposit is part of the larger Mt Cannindah project in Queensland, which hosts multiple copper, gold, and molybdenum occurrences within a Triassic porphyry-related system.
Well-Funded Exploration Backdrop
Cannindah is well positioned financially to pursue this aggressive exploration strategy, having recently completed a $3.9 million second tranche placement. This funding supports multiple drill rigs operating concurrently, including the ongoing deep drilling at the Southern Porphyry Target and the resource expansion drilling at Cannindah Breccia. The company’s cash position and operational momentum set the stage for a meaningful resource update once assay results and drilling are complete.
The expanded program and re-evaluation of historical data follow a series of encouraging drill results earlier this year, including the 94m at 1.11% CuEq intersection reported in March, which confirmed the continuity of high-grade mineralisation in the southern portion of the breccia. These developments are part of a sustained campaign to unlock the full potential of the Mt Cannindah system, which remains open for further expansion.
As the company progresses, the market will be watching closely for the updated Mineral Resource Estimate, which could reshape the project’s valuation and development pathway. The integration of new drilling data with historical insights could prove pivotal in defining the next phase of growth for Cannindah Resources.
Bottom Line?
Cannindah’s expanded drilling and historical data reassessment could unlock substantial resource growth, but the final impact hinges on upcoming assay results and the planned resource update.
Questions in the middle?
- How will assay results from previously unsampled historical holes influence the updated resource estimate?
- What is the potential scale and grade of mineralisation beyond the current 550m southern extension?
- How might the expanded drilling program affect Cannindah’s development timeline and financing needs?