Near-surface 30Mt Cu-Mo exploration target for Cannindah confirms porphyry potential

• Cannindah defines exploration target at Mt Cannindah’s Monument prospect
• A total of 34 historical exploration drill holes are included with added gold and silver potential
• Drilling at the Southern Porphyry target will begin in the next four to six weeks

Special report: Cannindah Resources has put numbers around a near-surface exploration target for what it believes to be a much larger copper system at Monument prospect within the Southern Porphyry target in Queensland. 

Historical drilling, recent mapping, rock-chip sampling and trench channel data at the flagship Mt Cannindah project have been integrated to define the Monument exploration target, which is estimated at 25-30Mt grading 0.2-0.3% copper and 100-150ppm molybdenum.

This conceptual target is equivalent to 64,000 to 114,000t copper equivalent metal.

The mineralisation sits within skarn and is interpreted as the upper expression of a potential porphyry system at depth.

Its defined footprint spans ~850 x 700m within a broader porphyry corridor and remains open to the west, south and east.

Although gold and silver aren’t incorporated into Cannindah Resources’ (ASX:CAE) exploration target due to incomplete assay coverage, surface and trench sampling confirm the presence of precious metals credits at a time of record prices for both commodities.

Gold may have slipped last week, dropping 5.3% as buying pressure built up from the crowded ETF trade, but it’s still up 7.13% for the month and up 49.63% compared to the same time last year, with Aussie prices sitting around $6264/oz.

Silver did much the same, falling to around A$74.85 last Friday, and losing more than 6% for the week amid concerns that the metal may have entered overvalued territory, but prices remain materially higher year-on-year, currently up 44%.

Additional copper-molybdenum mineralisation has been identified to the east at Appletree and Dunno, including trench intervals such as 61m at 1.28% CuEq and 46m at 0.81% CuEq, supporting the broader system scale.

Long Shortz with Cannindah: High-grade copper hits show deep porphyry potential

“Transformational potential”

Five holes have been completed in a resource extension drill campaign at Mt Cannindah Breccia with first assays due within two to three weeks.

Following this the rig will transition to drill testing of the Southern Porphyry target within the next four to six weeks.

Results of that campaign are expected to provide the first subsurface validation of the interpreted porphyry source.

CAE chairman Michael Hansel said the company’s work programs continued to upgrade the mineral potential of Mt Cannindah, which is southwest of Gladstone in central Queensland.

“It is my understanding that the development of skarn mineralisation identified here is frequently typical of the upper or overlying level of many of these porphyry systems,” he said.

“The delivery of this exploration target is an exciting and significant result not only in consolidating the target but also verifying the transformational potential at depth of this significant project.

“Our exploration teams continue to rapidly advance the current drill program, and we look forward to the delivery of results.”

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.