Cannindah Resources (ASX: CAE) Expands Opportunities with Codelco's Interest in Mt Cannindah

Highlights

• Codelco proposes due diligence on CAE’s Mt Cannindah project for a potential transaction.
• A consent deed allows Codelco low-impact exploration and data access at the site.
• CAE’s drilling campaign has expanded the Mineral Resource Estimates to 14.5 million tonnes at 1.09% copper equivalent.
• EPM 14524 at Mt Cannindaah has been renewed for five years, extending until April 2029.

Cannindah Resources Limited (ASX:CAE), an Australian mineral exploration company, recently received a significant proposal from Corporacion Nacional del Cobre de Chile (Codelco), a state-owned copper mining company in Chile. Codelco intends to conduct due diligence on CAE’s flagship Mt Cannindah project, marking a crucial step toward a potential transaction, as highlighted in CAE’s update.

Codelco focuses on exploring, developing, and extracting mineral resources, primarily producing refined copper and various by-products for global markets.

In July, Cannindah Resources announced the completion of the first phase of drilling at its Mt Cannindah Cu/Au project in Queensland, Australia. This campaign expanded the Mineral Resource Estimates to 14.5 million tonnes at 1.09% copper equivalent.

The CAE board is currently evaluating its position regarding the proposal. The Australian company has signed a consent deed outlining the conditions for Codelco’s access to the project and its data. This deed allows the Chilean company to conduct low-impact ground exploration and review drill cores stored in Townsville over the next few weeks.

Reflecting on the development, CAE’s Managing Director Tom Pickett commented, “It is an excellent endorsement of the credibility of the Mt Cannindah asset that we have attracted this continued international interest from a large copper Producer. We look forward to receiving the benefits of their work as we complete our work to continue to build scale at Mt Cannindah over the next 12 months. Our planned exploration program will be focussed on additional tonnes to expand upon the resource we recently released, along with exploration of new and existing targets to add further scale.”

EPM 14524 renewed for five years

Additionally, the company announced that the Queensland Department of Resources has renewed EPM 14524 at Mt Cannindah for another five years, extending it until April 2029. The project status remains in good standing, and CAE is eager to commence the planned exploration activities as soon as possible.

Shares of CAE last traded at AU$ 0.048 on 14 October 2024.