Cannindah Resources Advances Mt Cannindah Copper-Gold Resource with Strong Drilling Results and Metallurgical Progress

Southern Shoot Emerges as Major High-Grade Ore Body

Cannindah Resources (ASX:CAE) has confirmed a significant expansion of the Southern Shoot at its Mt Cannindah copper-gold project in Queensland. The June quarter drilling campaign extended this high-grade ore shoot beyond 150 metres along strike and over 200 metres vertically, with mineralised widths frequently exceeding 100 metres. Noteworthy intersections included 44 metres at 2.78% copper equivalent (CuEq) from 214 metres, embedded within a broader 103-metre zone at 1.40% CuEq, and other substantial intercepts such as 26 metres at 1.54% CuEq and 26 metres at 1.29% CuEq. Drilling ended in mineralisation, indicating the system remains open and ripe for further expansion.

This development transforms the Southern Shoot from a promising extension into a clearly defined and continuous ore shoot, bolstering confidence in the deposit’s scale and grade continuity.

Northern Shoot Drilling Upgrades Existing Resource

Alongside the Southern Shoot, Cannindah’s drilling filled historical gaps in the Northern Shoot, delivering wide mineralised intervals with notable high-grade zones. Highlights include 26 metres at 1.64% CuEq within a 128-metre interval, 10 metres at 3.95% CuEq, and 6 metres at 4.93% CuEq. These results suggest that parts of the existing Mineral Resource may be both wider and richer than previously modelled, supporting the company’s view of upside potential within the current resource boundaries.

Geological Model Refinement Enhances Targeting Strategy

Beyond assay results, the quarter saw a substantial advancement in the geological understanding of the Cannindah Breccia system. Cannindah identified that the highest-grade mineralisation concentrates preferentially at structural flexures along a major fault and at lithological contacts between intrusive diorite and meta sediments. This insight explains the development of both the Northern and Southern Shoots and refines exploration targeting, potentially accelerating future resource growth. Furthermore, broad lower-grade halos above these ore shoots provide vectors for discovering additional high-grade zones within the 2-kilometre mineralised corridor, of which only about 20% has been systematically drill tested to date.

Encouraging Diamond Drilling at Southern Porphyry Target

Cannindah’s exploration also extended to the Southern Porphyry Target, a 3,500-metre by 1,200-metre footprint interpreted as a porphyry copper-gold system. Although only four diamond holes have been completed, all intersected alteration and sulphide mineralisation consistent with the target concept. One drill hole returned 52 metres at 0.70% CuEq from 292 metres, reinforcing the target’s potential. Additional geophysical surveys are underway to identify further drill targets within this system, which remains a key component of Cannindah’s longer-term exploration strategy.

Metallurgical Test Work Supports Development Potential

To underpin the planned Mineral Resource Estimate (MRE) update in the September quarter, Cannindah commenced updated metallurgical test work on Cannindah Breccia samples. This program builds on previous studies and includes conventional and coarse particle flotation tests, aiming to confirm recoveries and concentrate quality for copper, gold, silver, and molybdenum. This technical step is critical to moving the project beyond resource expansion towards assessing its development viability.

Financial Position Enables Aggressive Exploration

The company closed the quarter with approximately $14.1 million in cash, following a $3.925 million placement completed in April. Exploration and evaluation expenditure for the quarter totaled $3.36 million, reflecting a robust commitment to advancing both resource growth and discovery initiatives. No mining production or development activities occurred during the period, consistent with Cannindah’s focus on exploration and technical studies.