Highlights

• Cannindah Resources has unveiled a new set of assays from the ongoing drill campaign at Mt Cannindah in central Queensland, pertaining to hole 22CAEDD017.
• Hole 17 successfully established that the mineralised breccia does indeed extend to the southwest.
• The hole links polymetallic breccia intersections and extends them to previously undrilled zones in the southwest and at depth.
• Mt Cannindah is shaping up to be larger than previously thought, according to the company.
• The company has also completed hole 18 and interesting copper breccia seems to be present as per visual observations so far.

Shares of Cannindah Resources Limited (ASX:CAE) traded in the green zone midday on 09 March 2023 at AU$0.185, up by 12.12%, with a market capitalisation of AU$92.72 million.

The surge in stock price was registered after the ASX-listed exploration and resource development company announced a new set of assay results from the ongoing drilling campaign at Mt Cannindah pertaining to hole 22CAEDD017 (final depth 768.46m).

The hole 17 assays demonstrate the mineralised breccia does indeed extend to the southwest. The deeper mineralised breccia zone intersected in hole 17 mounts up to the intercepts of CAE hole 3, which included a lower breccia zone of 148m @1.01% Cu, 0.22 g/t Au, 12.5 g/t Ag from 252m to 400m and CAE hole 9 which included a lower breccia zone of 64m @0.81% Cu, 0.21 g/t Au, 11.0g/t Ag from 335m to 399m.

Image source: Company update

According to Cannindah, the copper-gold-silver project in Queensland is shaping up to be larger than previously thought. It is consistently registering evidence of high-grade copper, gold, silver in the breccia and porphyry affinities with larger bulk tonnage being possible.

In-depth details of Hole 17 assays

Hole 22CAEDD017 was collared in the northeast sector of the Mt Cannindah mine area and targets the extent and continuity of copper-gold-silver breccia and intrusive hosted mineralization. Hole 17 drills in a south-south westerly direction which is a little oblique to the presumed strike of the breccia deposit.

The hole was designed to connect at depth, across numerous east west cross sections, the major intersections of mineralised sulphidic breccia in CAE holes 3,9,11, and to drill to the south west to investigate the possibility if the deeper breccia mineralization intersected at 400m in CAE 3 extends in that direction. Historical drilling is sparse at these depths and in this southwest sector of the Mt Cannindah deposit , so in this regard Hole 17 was drilling to test the extent of mineralisation on the western margin of the breccia.

CAE drilled hole 16 from north to south in late 2022, from the northern end of the Mt Cannindah Breccia and in a similar fashion to that hole, the target of CAE hole 17 is blind breccia hosted mineralisation under alluvial cover and diorite intrusive. CAE hole 17 was similarly successful with blind breccia making up the majority of rock units intersected from 280.3m till the end of the hole at 768.46m. The diorite and monzodiorite at the top of the hole is cut by some sheeted quartz sulphide veins, sericite altered argillic fault and rock crush zones. Visible gold was observed in 5mm quartz pyrite sphalerite vein at 109m.

A wedge of hornfels intruded by porphyry and cut by a vein fracture network of pyrite and minor chalcopyrite is present downhole in hole 17 from 256m to 280.3m. There is a sharp contact at 280.3m with hydrothermal infill breccia, dominated by angular clasts of sericite altered hornfels and minor diorite. Infill minerals between clasts has common coarse quartz, calcite -pyrite and chalcopyrite. The infill breccia is strongly sulphidic throughout with 4% to 8 % pyrite, 1.5% to 5% chalcopyrite between 280m and 430m.

A sulphidic shear/ fault zone, infilled with quartz sericite and semi-massive sulphide was intersected at 314m to 324m (10m @ 3.81 g/t Au), delivering 1m high gold values in the 5g/t Au to 16 g/t Au range. CAE expects this structure to be a significant mineralised high gold feeder, likely to correlate with the gold zone intersected at 288m – 295m in CAE hole 9 (7m @ 2.56 g/t Au).

Lesser sulphide is present in the hydrothermal infill breccia between 430m and 486m (3% pyrite, 0.3% chalcopyrite). Patchy sericite altered hornfels that seems to be essentially an insitu block between 480m and 509m.

Another infill hydrothermal breccia occurs downhole from 509m to 589m, quite pyritic averaging 3 % pyrite and copper bearing but with lower tenor in the order of 1% chalcopyrite. Below 589m there are many alternating zones of probable in situ hornfels blocks cut by porphyry dykes and close packed polymict clast supported breccia intervals. The clast supported breccias are dominated by clasts of porphyry and hornfels, often with very little rock flour matrix but can be highly sulphidic, in the order of 5% to 10% pyrite and trace chalcopyrite.

In short, the mineralised breccia system is still open to the south-west at Mt Cannindah. 

EXECUTIVE CHAIRMAN’S COMMENTS

“Cannindah Resources is showing that Mt Cannindah is shaping up to be larger than previously thought. Not only do we consistently see evidence of high-grade copper, gold, silver in the breccia but also porphyry affinities with larger bulk tonnage being possible. Hole 17 was designed to link areas together to assist with further resource calculation. It achieved its goal and provided further evidence with high grade gold hits and significant copper intercepts which is an amazing result. We are committed to pursuing our stated objectives of increasing known mineralisation at Mt Cannindah, and confirmation of the extension to the south-west has certainly done this so we are very pleased. We have now also completed hole 18 and from visual observations it has encountered interesting copper breccia as well. I look forward to pushing the exploration activity into new zones and outlining more interesting targets within the project area into the near future.”