Here’s the right way to grab attention. Step one, drill a resource extension hole. Step two, intersect 493m of mineralisation grading 1.17% copper equivalent from surface.

That’s exactly what Cannindah Resources (ASX:CAE) has achieved at its wholly-owned Mt Cannindah with the 21CAEDD003 hole that was drilled as part of a broader program to extend the current JORC resource, test the continuity of higher-grade copper zones within the project area, and possibly find new areas of interest for follow-up.

And there’s more to the tale. 21CAEDD003 was drilled to the rig’s capacity of 762m, which is well in excess of the original 250m planned depth due to the exceptional visual copper mineralisation encountered throughout the hole.

It also ended in mineralisation, which represents an opportunity to extend the hole with a larger rig to test the true depth plunge of the orebody.

Additionally, the hole was drilled in the opposite direction to historical holes at the project, confirming the continuity and extent of mineralisation in cross section and linking many of the mineralised zones intersected in those holes.

It is also nearly at a right angle to the earlier 21CAEDD002 hole that intersected two zones totalling 282m grading 1.28% copper equivalent.

Both 21CAEDD002 and 21CAEDD003 have also improved the company’s understanding of the project’s geometry, control and continuity of grade, which is essential to maximising the opportunity to increase the existing resource of 5.5 million tonnes at 0.93% copper.

The company has made major revisions to its ongoing drill program due to intersecting copper mineralisation over hundreds of metres in the first seven completed holes.

All these results are well-timed given the tightening copper market which has seen LME copper stockpiles drop by about 40% over the last two months due to commodity trader Trafigura withdrawing a significant portion of its warehoused copper to meet customer demand.

Cannindah also remains well-funded following a recent $1.5m placement to V8 supercar driver Paul Weel at a 15% premium and is supported by billionaire Tony Fung’s vehicle Aquis Finance, which owns almost half of the company’s shares.


Assay results

The intersection of 493m grading 0.89% copper, 0.26 grams per tonne (g/t) gold and 15.2g/t silver from surface consists of several different zones such as:

  • A surface oxide zone of 14m at 0.4g/t gold and 24g/t silver that has been stripped of copper;
  • A copper-enriched supergene zone of 19m grading 3.11% copper, 0.74g/t gold and 34g/t silver from a depth of 14m;
  • A 50m high-grade primary zone grading 2.02% copper, 0.75g/t gold and 40g/t silver from 33m; and
  • A lower primary zone of 148m at 1.01% copper, 0.22g/t gold and 12.5g/t silver from 252m.

This article was developed in collaboration with Fresh Equities, 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.