Cannindah Resources (ASX:CAE): Drilling Update and Resource Boost at Mt Cannindah

Highlights

• Cannindah Resources is advancing drilling operations to further define copper and gold mineralisation at the Mt Cannindah project and expand the existing Mineral Resource Estimate (MRE).
• The Mt Cannindah MRE saw a substantial increase with copper metal tonnes increasing by 117% and total resource tonnage growing by 183%.
• The SW IP anomaly, located 700m from the existing Mt Cannindah Resource, presents potential for a new discovery as it has never been drill-tested.
• The company secured AU$5 million in funding from institutional investors to support ongoing exploration efforts.

Cannindah Resources Limited (ASX:CAE) made significant progress in its exploration activities at the Mt Cannindah project during the December 2024 quarter.

Following the completion of the first phase of drilling at its flagship Queensland-based project, the company reported an expansion of the previously disclosed 2011 Mineral Resource Estimate (MRE).

In late November, Cannindah commenced a diamond drilling program at Mt Cannindah, aimed at further defining copper and gold mineralisation within the project area. Additional drilling is planned to continue advancing the exploration efforts.

Upgrade to Mineral Resource Estimate

In the second half of 2024, the company announced a substantial upgrade to its mineral resource estimate (MRE), with copper metal tonnes increasing by 117% and total resource tonnage rising by 183%, based on a cut-off grade of 0.3% CuEq. The updated MRE now stands at 14.5 million tonnes (Mt) at 1.09% CuEq.

Drilling advances at Mt Cannindah

In November 2024, a diamond rig was deployed to the site to commence the drilling program, focused on expanding the updated MRE at the company’s flagship project.

The planned drilling also targets other key IP anomalies near the MRE, expected to reflect a continuation of chargeability anomalism within the current resource area. This includes a southwest (SW)IP anomaly located approximately 700m from the Mt Cannindah Resource. The SW IP anomaly is interpreted to be significantly larger than the current resource footprint, with potential for a new discovery as this target has not been drill tested before.

Initial progress was delayed due to weather conditions, difficulties with fractured and broken ground, along with the Christmas break. However, after testing various drilling methods, operations resumed successfully in early January 2025.

Hole 24 intersected multiple mineralised breccia zones starting at nearly 80m.

This breccia type is consistent with previous discoveries within the MRE at Mt Cannindah.

Funding Secured for Expansion

During the December 2024 quarter, Cannindah Resources successfully raised AU$5 million from institutional and sophisticated investors to accelerate exploration activities. These funds enabled the quick deployment of drill rigs to Mt Cannindah to advance exploration efforts.

CAE shares traded approximately 3.45% higher at AU$0.06 cents on 21 February 2025.