Cannindah Resources (ASX:CAE) shares jump on "significant" gold discovery at Hole 18 Mt Cannindah

Highlights 

• Bonanza grades of gold have been discovered at Hole 18 of Mt Cannindah Project, says CAE
• The company fully owns its Central Queensland located Mt Cannindah Project and has no debt
• The Hole 18 drills in a south south westerly direction, and Hole 19 drilling is now underway

ASX-listed Cannindah Resources (ASX: CAE) -- with focus on copper (Cu) and gold (Au) -- has informed about "significant" discovery of gold, including "bonanza" grades up to 92.6 g/t gold. This discovery has been made at the southern extension of Mt Cannindah (Hole 18).

The Executive Chairman of the company Mr. Tom Pickett has lauded the existence of high-grade gold and commented that Hole 18 intercept is likely to be "replicated” in Hole 19.  

Cannindah Resources fully owns its Mt Cannindah Project (Queensland). The copper-gold-silver project is now having Hole 19 under drilling.

Project location (Source: CAE ASX announcement dated 3 April 2023)

Technical details and results

Notably, at the Mt Cannindah project, the drilling program has already been underway for a long time, and this recently released update now (200 metres down hole 23CAEDD018) pertains to the additional set of completed assay results. The hole #18 was collared south of the main section of the mine area. The hole intended to look at the extent and continuity of breccia (Cu, Au, AG), along with the intrusive hosted mineralization. This hole is sub-parallel to hole #13, the results of which are in the below picture. The drilling highlights of hole 18 (top 274 metres) are in the next picture.

Source: CAE ASX announcement dated 3 April 2023

Source: CAE ASX announcement dated 3 April 2023

Notably, the top of hole 18 validates "tremendous" potential of the project, with high grade copper, gold, and silver intercepts. The company has asserted that the Mt Cannindah project is progressing well with the drilling of hole #13, 18, and 19. Next holes are also expected to demonstrate similar positive outcomes. As of now, the company is drilling hole #19. This traverses between the previous two holes -- 13 and 18.

The below picture has assay highlights of 23CAEDD018 (top to middle).

Source: CAE ASX announcement dated 3 April 2023

Statement

The company’s Executive Chairman has said that the area is “significantly under explored”. Cannindah Resources is expected to add data through its drilling works and highlight the resource potential of the zone. He also added that high-grade gold availability in the breccia is a further step toward extending Mt Cannindah mineralisation to the south-west.

CAE ASX shares

CAE's ASX-listed shares jumped after this announcement on 3 April 2023. They were priced at AU$0.17 on 4 April 2023. The company had a total market cap of over AU$95.5 million at the time of writing.