Cannindah confirms high-grade gold at Queensland copper project

• Cannindah Resources flags up to 96.86g/t gold at namesake QLD project
• Company on the lookout for porphyry related system
• Drilling ongoing to extend copper mineralisation

Special Report: Cannindah Resources has intersected high-grade gold in recent drilling at its Mt Cannindah copper-gold project in Queensland, with a best result including an intercept grading up to 96.86g/t gold.

Cannindah Resources (ASX:CAE) has emerged as one of the most intriguing pure-play copper explorers on the ASX in recent times, but now has the added advantage of high grade gold and silver being present at the Sunshine State deposit.

They also hint at the potential of a large porphyry system at the project, which already holds a resource of 14.5Mt at 1.09% copper equivalent similar in mineralisation style to giant orebodies like Newcrest’s Cadia.

Base metal veins carrying appreciable gold are typically developed in the outer or peripheral zones of porphyry related systems, with this style of vein development sometimes contributing to the potential metal inventory on a commercial basis.

While the impact of this is yet to be determined, CAE is confident of the gold potential at Mt Cannindah, having now intersected substantial high-grade gold mineralisation both within the resource envelope and in the surrounding system.

Some of the better intersections from this latest drilling include:

• 1m at 96.85g/t gold from 450m (CAE007)
• 1m at 24.00g/t gold from 225m (CAE011)
• 1m at 22.98g/t gold from 322m (CAE013); and
• 1m at 31.07g/t gold from 464m (CAE024).

Copper still the main exploration focus

Copper remains the key focus for Cannindah. But with gold at record highs, trading well beyond $5000/oz, the gold opportunity at the site near Bundaberg will be followed up.

“The recognition of the repeated development of high-grade gold results associated with a late-stage overprint on the copper gold Cannindah Breccia system requires further assessment to quantify the gold opportunity,” CAE managing director Tom Pickett said

“Early indications suggest a possible metal zonation with higher level gold anomalism developed in the south which is encouraging.

“We have now observed these veins over a 600m strike and a vertical depth of greater than 800m.

“Future activity where gold is concerned will be aimed at defining the controls, continuity and any additional areas of the high grade gold zones.”

Pickett said drillhole CAE027, which is currently being completed, is a key ingredient in the company’s exploration plans as it is targeting a high order IP anomaly with both separate historic broad intervals of low-grade gold, and broad intervals of copper in associated stockwork veining.

“Hole 27 is 400m or more away from the resource area at Mt Cannindah,” he said.

“The possible presence of copper in this area with signs of chalcopyrite veinlets present would speak volumes as to the potential scale of the system we are dealing with at Mt Cannindah.”

Ongoing activities to focus on both the extensions of the Cannindah Breccia mineral resource estimate and will now incorporate an ongoing assessment of the gold potential adjacent to the MRE.

CAE will also target the lateral and vertical extensions of the current identified breccia and high-grade vein system along strike and at depth, as well as review the larger system potential of the Mt Cannindah area.

This article was developed in collaboration with Cannindah Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.