Cannindah Resources Limited (ASX: CAE), a company from the metals and minerals industries, which is into the business of developing gold and copper resources announced that its Piccadilly Ground magnetic survey results were very encouraging. As announced in the AGM of CAE, the company was performing the ground-based magnetic geophysical surveys at its Piccadilly project. The purpose of the geophysical exploration was to identify the location of the shoot controls of the potential high-grade gold mineralization.
On 23 November 2018, the company made an ASX announcement where it was highlighted about the existence of high-grade gold mineralization near surface. The sample within the Piccadilly mining lease area reports the gold grades as high as 79.4g/t. The further geophysical survey will commence post consultation with our geological consultants at Terra Search and Klondike Exploration to identify the location of drilling.
Based on the detailed preliminary processing of the recent ground magnetic survey at Piccadilly project, there was a discovery of a very precise pattern of the mineralization structure. There was the existence of host sedimentary units and faults which is a crack in the earth crust which acts as a boundary between tectonic plates of the Earth.
The existence of several faults in the region shows the possibility of gold mineralization lodes getting displaced.
Through the detailed ground magnetic survey data, the exact position of individual gold lodes got identified. Based on the earlier results and the results from the ground magnetic, CAE would be able to expedite their process of targeting the high-grade gold shoots.
The official listing of CAE on ASX is 20 May 2005 where the performance of CAE remains negative till last year. However, its YTD performance is 16.67%. In 10 years, CAE’s performance was -20.44%. Its one-year performance was -30%.
For the FY2018, which ended on 30 June 2018, CAE’s loss increased and was $1,189,141 by the end of the period. The balance sheet of Cannindah Resources Limited shows that the company has a net asset base of $1,452,903 which indicates that the company will be able to manage its long-term obligations. However, the company might face challenges in meeting its working capital needs and its short-term debt as the company has enormous total current liabilities of $3,743,984 which is much above its total current asset of $96,427. Further, in FY2018, the company reports an increase in the accumulated losses which indicates the weak operating performance of the company.
By the end of the period, there was a decrease in the net cash and cash equivalent. The net cash and cash equivalent with Cannindah Resources Limited by the end of the financial year 2018 were $10,461.
The shares traded flat on 10 January 2019, where the closing price of the share was A$0.021 with the stock holding a market capitalization of A$3.52 million.
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