Exploration and resource development business Cannindah Resources (ASX: CAE) has served up a thick and high-grade copper intercept which extends the known mineralisation at its Mt Cannindah copper and gold project in Queensland.
Outstanding intercept
The “outstanding” 71m hit grading 0.95 per cent copper equivalent comes from the group’s maiden hole of a recently launched drilling campaign, designed to grow the current resource and to test other nearby targets at the project.
The intersection is contained within a significantly larger 274m mineralised zone grading 0.49 per cent copper equivalent from 82m depth. Parts of the hole also returned high-grade gold including 1m at 31.07 grams per tonne and 1m at 5.14 g/t gold.
Management noted that the intercept points to the continuity of copper mineralisation at the Mt Cannindah deposit and extends mineralisation beyond the existing resource. It also fills the data gap between “excellent” results from two previously drilled holes.
So far, the company has defined a mineral resource at the project consisting of 14.5 million tonnes at 1.09 per cent copper equivalent.
Cannindah Resources managing director, Tom Pickett, commented:
“These outstanding results further demonstrate the continuity of the high grade zone and support the clear upside potential of the Cannindah Mineral System given that only 15% of the total surface area of the system hosts the 158,000t Cu equivalent that currently makes up the 14.5Mt Cannindah Mineral Resource.”
Testing key exploration targets
Drilling at Mt Cannindah continues to march forward with the rig now set to commence a fourth hole to test a priority target known as ‘the south west IP anomaly’, located some 700m from the current resource.
This target is interpreted by Cannindah to be significantly larger than the size of the existing resource footprint.
The drilling will also test the Cannindah East prospect located about 600m to the east of the resource area, which so far has only seen limited follow up drilling despite hosting notable historical intercepts including 52m at 4.9g/t gold from surface.
The ongoing drilling blitz follows a successful $5 million capital raise recently concluded by the company. Results from the other two holes drilled to date remain pending.