Cannindah Resources (ASX:CAE) continues FY22 exploration momentum into FY23

Highlights

• Cannindah Resource has made significant progress across its projects during FY22 with a drilling campaign and expansion of tenements.
• CAE delivered the final results from the 31 reverse circulation hole drilling campaign at Piccadilly and also results from a drilling program that included 14 holes at Mt Cannindah.
• CAE states that it will continue focusing on advancing its exploration potential, with further holes planned for drilling in 2023.

Cannindah Resources Limited (ASX:CAE) has been focusing on mineral exploration, evaluation, and progressing development across multiple mineral projects. The company has reported significant progress across its projects for the year ended 30 June 2022.

During the year, CAE focused on expanding exploration activities at its flagship Mt Cannindah project via drill testing areas determined by previous reviews. Apart from this, CAE also expanded its holdings at Piccadilly through successful application for two new large tenements.

Expansion of tenement at Piccadilly Project

In August 2021, CAE delivered the final results from the 31 reverse circulation hole drilling campaign at Piccadilly delivered, including the following key highlights:

©2022 Kalkine Media® | Data Source: CAE | Image Source: © Jasonbennee | Megapixl.com

CAE increased its land holdings with two new EPMs, 27788 and 27841, located in the Townsville-Charters Towers mining district. CAE states that it will look to implement the same approach for the exploration of the new tenements as the one used in the Piccadilly Project.

The company also reported its intention to develop a gold model that will help in identifying the scale and gold prospective features.

CAE believes that it is in a sweet spot to use its experience at Piccadilly to apply scale, geophysical modelling of magnetics, IP, and multielement zoning patterns across the tenements.

Drilling campaign at Mt Cannindah Project

CAE has been continuing a new diamond drilling campaign for testing substantial areas of interest at the Mt Cannindah project after the finalisation of the Piccadilly program. The drilling campaign at Mt Cannindah kicked off in July 2021 with the objective of identifying areas that can potentially extend the existing JORC resource.

Besides this, the drilling campaign is aimed at determining the continuity of higher-grade copper and gold zones as well as locating new areas for a follow-up to the north and south of the project.

The drilling program includes 14 holes to date, with the following key results:

©2022 Kalkine Media® | Data Source: CAE | Image Source: © Intst | Megapixl.com 

CAE has reported significant mineralisation across all 14 holes drilled and is now planning further drilling for the ongoing financial year. During FY22, CAE also renewed nine mining leases for an additional 12 years, until 31 March 2034.

Financial stance and environmental regulation

CAE has further strengthened its financial position since the end of FY22 and has raised AU$2,000,000 (before costs) intended for continuation of its drilling program.

On the environmental front, CAE’s operations are subject to substantial environmental regulation under Commonwealth and State legislation concerning the release of harmful waste.

Moreover, CAE holds approvals from all the required environmental authorities in relation to the Environmental Protection Act 1994, and other related approvals, that empower the company to operate within its mining leases and the several exploration tenements.

CAE’s plan going forward

At present, CAE is engaged in the usual commercial discussions that take place when CAE intends specific transactions of capital raising and upcoming commercial opportunities.

CAE states that it will continue focusing on advancing the exploration potential across its Mt Cannindah and Piccadilly Projects. Moreover, the company is continuing its successful drilling campaign at Mt Cannindah into the financial year 2023, wherein it plans to drill further holes.

CAE’s board also seeks to benefit from further corporate opportunities that the company engages in evaluating from time to time.

CAE stock was noted at AU$0.240 on 15 November 2022.