Cannindah Resources (ASX: CAE) Extends Southern Shoot High-Grade Zone

Cannindah Resources has extended the interpreted high-grade Southern Shoot at its Cannindah Breccia resource by about 50 metres to the north, after diamond drilling returned a partial 75-metre intersection grading 1.17% copper equivalent.

Hole 26CRD009W intersected the mineralisation from 213 metres downhole, with constituent grades of 0.30% copper, 1.02 grams per tonne gold and 8.60 grams per tonne silver. The result reinforces the gold and silver-rich character of the Southern Shoot within the existing Mt Cannindah resource area.

The broader interval included 18 metres at 1.53% copper equivalent from 216 metres and 17 metres at 1.35% copper equivalent from 249 metres. The latter contained 0.56% copper, 0.82 grams per tonne gold and 14.77 grams per tonne silver.

All reported intervals are downhole lengths and their true widths are not known. The headline intersection is also partial, with further assays from the hole pending.

Diamond drilling improves confidence

The diamond hole was wedged from an earlier reverse-circulation hole after challenging ground conditions caused poor sample recovery. That original hole returned 74 metres at 0.49% copper equivalent from 202 metres.

By contrast, the follow-up diamond hole provided better geological information and a substantially higher-grade result. Cannindah said the drilling allowed its team to identify the hanging-wall and footwall contacts of the mineralised breccia more clearly.

The distinction matters because the new intersection lies within the existing Mineral Resource area rather than representing a standalone discovery outside it. The result can therefore contribute geological and grade information to future resource modelling and studies of potential open-pit extensions, although Cannindah has not yet reported a resource increase from the hole.

Managing Director and Chief Executive Cameron Switzer said: “Importantly, this mineralisation sits within our existing resource area and provides valuable additional support for future resource modelling and assessment of the open-pit development opportunity.”

Mt Cannindah’s Mineral Resource currently stands at 23.2 million tonnes grading 0.93% copper equivalent, containing an estimated 216,500 tonnes of copper-equivalent metal. Measured and Indicated material represents 85% of the total tonnage. The estimate is reported at a 0.3% copper-equivalent cut-off within an optimised open-pit shell.

More assays to follow

Two drill rigs remain active at the Cannindah Breccia, testing extensions along strike to the north and south and at depth. Cannindah is awaiting assays from another 11 holes at the breccia and three holes at the Southern Porphyry. It has also completed 13 pre-collar holes in preparation for diamond tails.

The company said it remains funded to continue the resource expansion program, which will also collect information for future open-pit optimisation and assess potential underground opportunities. Mt Cannindah is located 90 kilometres southwest of Gladstone in central Queensland.