Cannindah Resources (ASX:CAE) secures AU$5Mn for Accelerated Mt Cannindah drilling

Highlights

• CAE has completed a AU$5 million capital raising and plans to ramp up exploration at the Mt Cannindah Copper Gold Project.
• Drill rigs are expected to move to the site within 2-3 weeks, with drilling commencing shortly thereafter.
• The drilling program aims to expand the existing resource and test significant IP anomalies.
• In-fill soil sampling is planned to identify new drill targets across the project area.

Cannindah Resources Limited (ASX:CAE) has completed a AU$5 million placement announced last week. With these funds, the company intends to  accelerate  exploration activities at the Mt Cannindah Copper Gold Project in Queensland. Preparations for drilling at the site are underway, with staff mobilising to the location.

Mobilisation and Exploration Plans

Planning for drilling and exploration in the resource extension area at Mt Cannindah, Cannindah East, and a large-scale Induced Polarisation (IP) anomaly located approximately 800m southwest of "Target 2" is already in progress. Over the next two weeks, CAE personnel and contracted geologists will arrive on-site to conduct initial work before commencing the drilling activities.

Further in-fill soil sampling is also planned across Target 2 and the wider project area to address any data gaps, allowing for the identification of additional drill targets. This in-fill soil sampling will also help cover any drill target areas that require further surface geochemistry analysis.

Drill rigs are anticipated to arrive on-site within 2–3 weeks following the initial work, and drilling will commence soon thereafter.

Drilling to target three key areas

Cannindah Resources plans to focus on three critical areas during the upcoming drilling program:

• Resource Expansion: Expanding the current JORC-compliant resource of 14.5 million tonnes at 1.09% CuEq, which is open along strike and at depth.
• IP Anomaly Testing: Analysing a significant IP anomaly which is situated near the Mt Cannindah resource area and is estimated to be more than twice the size of the existing resource area.
• Cannindah East Prospect: Testing the Cannindah East Prospect, including testing the previous drilling results, such as hole CE01 which intersected 52m at 4.9 g/t Au from surface.

CAE shares traded 5% higher at AU$0.042 apiece at the time of writing on 29 October 2024.