Cannindah Breccia Drilling Expands High-Grade Southern Shoot by 50m

Southern Shoot Expansion Highlights Resource Growth Potential

Cannindah Resources Limited (ASX:CAE) has reported further impressive drilling results from its Cannindah Breccia Deposit, notably expanding the high-grade Southern Shoot by an additional 50 metres along strike. Drill hole 26CRC017, despite ending prematurely due to ground conditions, returned 26 metres at 1.29% copper equivalent (CuEq), including 0.92% copper and 0.27 grams per tonne (g/t) gold from 192 metres, within a broader 58-metre mineralised zone averaging 0.68% CuEq. This extension pushes the Southern Shoot’s defined strike length beyond 150 metres with vertical depths exceeding 200 metres and widths frequently surpassing 100 metres, while remaining open for further expansion both along strike and at depth.

The company is currently redrilling adjacent to 26CRC017 to fully test the mineralised zone and target additional southern extensions. Previous high-grade intersections from the Southern Shoot include standout intercepts such as 54 metres at 1.61% CuEq and 44 metres at 2.78% CuEq, underscoring the shoot’s robust continuity and grade tenor.

Northern Shoot Drilling Reveals Wider and Higher-Grade Zones

Meanwhile, drilling targeting data gaps within the Northern Shoot has delivered encouraging results, with mineralised widths often exceeding prior modelling. Notable intercepts include 10 metres at 3.95% CuEq from 38 metres and 6 metres at 4.93% CuEq from 54 metres, embedded within broader zones of 62 metres at 0.79% CuEq and 24 metres at 1.38% CuEq respectively. These findings suggest a more substantial and higher-grade footprint than previously understood, which is expected to materially enhance the Mineral Resource Estimate (MRE) upon completion of the current drilling campaign.

Drilling Outperforms Existing Resource and Supports Q3 Upgrade

Assay results from 26 of the 33 planned reverse circulation drill holes in the 2026 program highlight mineralisation footprints wider and higher grade than those in the current MRE, which totals 14.5 million tonnes at 0.72% copper and 0.42 g/t gold across measured, indicated, and inferred categories. The ongoing drill program focuses on a 700-metre section of a 2-kilometre interpreted structural trend marked by historical workings and geophysical anomalies. Cannindah’s Managing Director Cameron Switzer emphasised that the strategy of increasing drill density and employing reverse circulation rigs is yielding consistent delineation of new mineralisation, reinforcing confidence in material resource growth ahead of the MRE update scheduled for Q3 2026.

Extensional drilling has also identified mineralisation to depths exceeding 1,000 metres, suggesting the potential for further resource expansion with deeper follow-up drilling. The company is progressing metallurgical test work to update prior studies, aiming to improve recovery models and support the forthcoming resource upgrade.

Broader Exploration and Next Steps at Mt Cannindah

The Mt Cannindah Project, situated 90 kilometres southwest of Gladstone in Queensland, hosts multiple mineralised occurrences including copper, gold, and molybdenum within a structurally controlled porphyry-related breccia system. Exploration activities continue to target both the Cannindah Breccia and the Southern Porphyry Target, with diamond drilling underway to test deeper copper-gold mineralisation. The company plans to complete the current drilling program, process outstanding assay results, and interpret diamond drill data from the Southern Porphyry Target. Additionally, follow-up drilling will investigate new chargeability and conductivity anomalies identified through reprocessed geophysical data along strike from the Cannindah Breccia.

With metallurgical test work underway and a Mineral Resource Estimate update anticipated in the third quarter, Cannindah Resources is positioning itself for a potentially significant re-rating based on the evolving scale and grade of its flagship deposit.