Dec quarter roundup: Cannindah Resources (ASX: CAE) makes significant progress at Mt Cannindah project

Highlights

• Observations by Dr Alan Wilson outlined high priority targets at Mt Cannindah.
• In the coming weeks, the company expects to complete holes 20 and 23.
• Metallurgical testing and reporting have provided significant outcomes to the project economics.

Mineral exploration and development company, Cannindah Resources Limited (ASX: CAE) focused on developing its Mt Cannindah project during the latest quarter ended 31 December 2023. Moreover, during the quarter, the company was engaged in corporate discussions concerning due diligence from interested parties and capital raising alternatives.

The reported period saw closing of capital raising program which started in the previous quarter. Through share purchase plan and a placement, the company raised AU$1.61 million.

In this article, the activities undertaken at the Mt Cannindah project are discussed in detail.

Mt Cannindah project, a high priority target

The project lies 100km south of Gladstone, Queensland and represents a high level “porphyry style” Cu-Au-Ag mineralised system. During the reported period, Dr Alan Wilson, CAE consultant, concluded an inspection of the drill core and undertook a site visit with CAE at the project. This follows the earlier review by Dr Wilson.

Based on the observations, Dr Wilson shared an updated report which highlighted high priority targets. Dr Wilson, a porphyry system specialist, has provided services to companies like Anglo American, Rio Tinto, Newmont, and Newcrest.

Data source: Company update

The company informed that this a high priority target for CAE in upcoming months, if successful, it could add substantial tonne to the existing successful drilling campaign at Mt Cannindah.

Significant gold assays reported at Mt Cannindah project

During the reported period, substantial gold assay results were reported. In the previous period, completed holes at Cannindah East provided for 121 metres at 0.5g/t Au from hole 21, included 15m @ 1.23g/t Au from 11m to 26m. Meanwhile, hole 22 provided 41 metres at 0.75g/t Au from surface and it included 11m at 1.3g/t Au from 20-31 metres.

The company expects to complete hole 20 and 23 in next couple of weeks.

Metallurgical results reported at the project

At the project, metallurgical testing and reporting has been concluded, and positive metallurgical test results were reported. The results confirmed that the copper, silver and gold which was drilled at the Mt Cannindah breccia produces a saleable concentrate and good recoveries.

CAE shares traded at AU$0.067 apiece on 28 February 2024.