Cannindah Resources Strikes High-Grade Gold at Mt Cannindah

Key Highlights:

• Drilling reveals multiple high-grade gold intercepts, including 1m @ 96.85g/t Au.
• Copper-gold potential expands with confirmed mineralisation beyond current resource area.
• Ongoing drilling aims to uncover scale of emerging porphyry-style system.
• Shares climb 12.7% on new exploration update.
   

Cannindah Resources Ltd (ASX: CAE) is once again in the spotlight, delivering a strong punch of high-grade gold from its 100%-owned Mt Cannindah copper-gold project in Central Queensland. As gold prices surge above US$3,200/oz, the timing couldn’t be better. With a series of impressive drill results and a steadily growing copper equivalent resource, CAE is shaping up as a compelling exploration story for investors hunting value in Australia’s junior mining space.

The company’s latest update on April 14 revealed eye-catching gold assays from several drillholes, including standout intercepts such as 1 metre at 96.85g/t Au (hole CAE007) and 3 metres at 34.39g/t Au (CAE018). These results are part of a broader mineral system that includes copper, silver, and zinc mineralisation, reinforcing the polymetallic potential of the Cannindah Breccia.

Gold’s Growing Role in a Copper-Focused Play

Traditionally seen as a copper explorer, Cannindah Resources is now contending with what appears to be a meaningful gold overprint on its breccia-hosted system. Notably, high-grade gold zones have been identified both within the existing Mineral Resource Estimate (MRE) and outside it—over a strike length of more than 600 metres and to depths exceeding 800 metres.

Managing Director Tom Pickett called the repeated gold intercepts “encouraging,” and pointed to the possibility of zoned metal distribution—an important clue in porphyry systems. “We are a copper-focused company with the added advantage of high-grade gold and silver,” Pickett stated. “These new gold veins add another dimension to the Mt Cannindah system.”

Resource Update and Market Reaction

The market has taken notice. CAE shares jumped 12.73% to $0.062 on the ASX following the announcement, bringing its year-to-date gain to nearly 59%. The company’s market cap now sits around $45 million, with 728 million shares on issue.

Earlier resource modeling (July 2024) estimated the Mt Cannindah deposit to contain over 104,800 tonnes of copper, nearly 200,000 ounces of gold, and 6.4 million ounces of silver across measured, indicated, and inferred categories. With the new gold-rich zones emerging, expectations are growing that Cannindah could soon revise these figures.

A Deeper System Emerging

The ongoing drilling—now focused on hole CAE027—is testing a high-order induced polarization (IP) anomaly south of the main resource zone. The area already shows signs of chalcopyrite-bearing veinlets, hinting at potential copper-rich extensions that could drastically increase the project’s scale.

Importantly, the mineralisation style is evolving. Recent results highlight the presence of visible gold in late-stage carbonate-quartz veins—an indication of zoned mineralisation consistent with porphyry systems globally. These veins, often rich in gold and zinc, suggest that Mt Cannindah could be far more than a simple breccia-hosted copper deposit.

Next Steps and Investor Watchpoints

With ongoing structural studies, domain modeling, and mineralogical analysis underway, CAE aims to define the continuity and geometry of these gold-bearing zones. Further drilling is expected to test down-dip and along-strike extensions, as well as broader porphyry targets previously underexplored.

While the path to production is still distant and subject to permitting, market sentiment is turning in CAE’s favour. With a clear focus, compelling drill data, and commodity tailwinds, Cannindah Resources may be building the foundations of Queensland’s next significant copper-gold camp.