Cannindah Resources (ASX: CAE): Abundant opportunity at Mt Cannindah amid gold rush

Highlights

• In the past week, gold prices have showed positive movements, with spot gold prices reaching highs above AU$2150/oz.
• Gold content encountered at the Mt Cannindah project to date points to a golden opportunity, as stated by CAE.
• Few drill holes at the Mt Cannindah project have also intersected copper and silver.
• CAE has reported encouraging metallurgical testwork outcomes.

In the midst of a resurging gold rush, Cannindah Resources Limited (ASX:CAE) is eyeing to redefine the landscape of mineral exploration. The current surge in gold prices, reaching impressive highs above AU$2150 per ounce, has not only sparked investor enthusiasm but has also unveiled a golden opportunity at the company's flagship Mt Cannindah project.

This article delves into the promising developments that position CAE to tap the opportunities arising.

Positive Movements in Gold Prices:

Over the past week, the gold market has witnessed positive movements, with spot gold prices scaling new heights. Investors are keenly aware of the lucrative nature of gold, especially during times of political and financial uncertainty. As discussions about potential interest rate cuts unfold in the US, the reliability of gold as a store of value comes into sharper focus, creating a favourable backdrop for explorers like CAE.

Significant drill intercepts at Mt Cannindah:

CAE's relentless drilling efforts at the Mt Cannindah project have yielded significant amounts of copper, gold and silver, accentuating the project's immense potential. Notably, several drill holes have intersected copper and silver, adding an extra layer of excitement to the exploration narrative.

Impressive Drill Results at Mt Cannindah:

A closer look at the drill results reveals noteworthy findings:

Hole 7 - New gold discovery was made at 3m @ 28.87g/t Au, including 1m @ 81.6g/t Au and 107g/t Ag from 450m.

Hole 8 - 17m @1.09g/t Au including 1m @ 8.18g/t Au

Hole 9 encountered 14m 1.65g/t Au from 287m

Hole 10 –

• 5m @ 1.04g/t Au and 26.8g/t Ag (from surface),
• 8m @ 2.25g/t Au including 3m @ 5.52g/t Au, and 17.4g/t Ag (lower gold zone)
• aggregate over 295m @ 0.48g/t Au

Hole 11 –

• 23m @ 1.8g/t Au including 6m @ 2.7g/t Au
• 9m @ 1.62g/t Au (new lower gold zones)
• 3m @ 3.73g/t Au including 1m @7.73g/t Au and 1m @ 10.0g/t Au
• Aggregate of 118m @ 0.7g/t Au

Hole 12 encountered 1m @ 4.44g/t Au

Hole 13-

• 4m @ 2.11g/t Au including 0.5m 22.7g/t Au (surface gold zone)
• 3m @ 5.70g/t Au from 14m
• 3m @ 5.32g/t Au from 20.5m including 1m @ 9.80g/t Au

Hole 14 reported 132m of copper at 0.98%Cu was better for silver than gold with 5m @47.2g/t Ag including 2m @ 60.5g/t Ag from 268m.

Hole 15 achieved reasonable gold with 1m @ 1.19g/t Au.

Hole 16 reported copper, 155m @ 1.125 CuEq including 8m @ 3.06%Cu and 0.6g/t Au.

Hole 17 returned 10m @ 3.81g/t Au including 6m @ 6.19g/t Au.

Hole 18 – For the aggregate interval of 103m – 378m, the company had encountered 275m @ 1.1g/t Au, 0.29% cu, 7.9g/t Au, including 18m @ 6.34 g/t Au, 0.18% Cu, 17.2 g/t Ag (244m – 262m) up to 23.93 g/t Au, 61g/t Ag. Also, the results include 20 @ 5.5 g/t Au, 0.81% cu, 23 g/t Ag (355 – 375m), which comprises 3m @ 34.39 g/t Au, 0.78% cu, 4.8 g/t Ag (359 – 362m).

Hole 21 - 121m @ 0.50 g/t Au,3g/t Ag (surface 0m-121m), includes shallow pyritic zone 15m @ 1.23 g/t Au, 6 g/t Ag, 4.9% S (11m-26m)

Hole 22 - 41m @ 0.75 g/t Au, 3.1g/t Ag (surface 0m-41m), includes 11m @ 1.3 g/t Au, 3.5 g/t Ag, (20m-31m)

Recently, the company concluded metallurgical study, validating that the copper gold and silver breccia mineralisation that the company has drilled at the project holds the potential to deliver a saleable concentrate at good recoveries.

As the gold rush gains momentum, Cannindah Resources is eyeing to harness the opportunities presented by rising gold and copper prices. The impressive drill results and favourable metallurgical testwork results underscore the company's focus on unlocking the full size potential of Mt Cannindah.

CAE shares last traded at AU$0.07 apiece on 11 March 2024.