Cannindah Resources (ASX: CAE) soars with 117% increase in copper estimate

Highlights

• Cannindah Resources has made a significant leap in its copper exploration efforts.
• The first phase of drilling completed at the Mt Cannindah project has significantly expanded the Mineral Resource Estimate (MRE) from 2011.
• The updated MRE is 14.5 million tonnes at 1.09% copper equivalent with a cut-off grade of 0.3% CuEq.
• This new MRE shows a 117% increase in copper metal.
• Further drilling will test high-priority IP targets near the Mt Cannindah resource area.

Cannindah Resources Limited (ASX: CAE) shares jumped nearly 19% during morning trading hours on Wednesday after the company shared an encouraging update regarding its flagship project, Mt Cannindah, located in Queensland. The company has successfully completed the first phase of drilling at the site, leading to a significant expansion of the previous 2011 MRE.

The revised MRE now stands at 14.5Mt at 1.09% copper equivalent at a cut off grade of 0.3% CuEq. This represents a 117% increase in copper metal, a 183% jump in overall tonnes, 229% surge in gold ounces and 148% increase in silver ounces, over the previous 2011 MRE.

More on updated MRE

The MRE assumes that mineral resources will be exploited through an open pit extraction method. To ensure the reasonable prospects of economic extraction, the MRE has been reported within a nominal pit shell with a pit floor at a maximum depth of 350m below surface.

Image source: Company update

Notably, the resource begins at surface, remains open along strike and at depth. Furthermore, majority of the MRE complies with the 2012 JORC Code & Guidelines as indicated and measured.

CAE eyes further resource boost

The company is focused on further defining and expanding its resource base by continuing exploration across all its projects.

At Mt Cannindah, a comprehensive exploration campaign, including significant drilling activities and the engagement of experienced contractors, has been planned. This includes additional work to identify more targets across the project area and ground-based exploration at the Piccadilly gold project.

Further drilling is expected to test other high-priority IP targets near the Mt Cannindah resource area, helping to solidify and expand the company's resource base.

CAE shares jump

CAE shares were trading at AU$0.062 apiece, up 6.89%, at the time of writing on 3 July 2024.