Cannindah Resources raises $5m and ramps up copper-gold drilling

Cannindah Resources raises $5 million to recommence drilling at its Mt Cannindah copper gold project in Queensland.

The company is looking to expand on the project’s resource of 14.5Mt at 1.09% copper equivalent. Pic: via Getty Images

• Cannindah Resources has received funds from its recent $5m cap raise

• Company will now kick off drilling and exploration at Mt Cannindah project

• Drill rigs are expected to mobilise within 3-4 weeks.

 

Special Report: Cannindah Resources has received funds from its recent $5m raising via a placement at 4c per share and will resume drilling at its Mt Cannindah copper gold project in Queensland in the coming weeks.

The company announced a maiden resource for the project back in July of 14.5Mt at 1.09% copper equivalent (CuEq), which starts at surface and is open along strike and at depth.

Notably, previous drilling at the project has returned some world-class intersections such as 493m at 1.17% CuEq from surface, 282m at 1.28% CuEq from surface, and 278m at 1.26% CuEq from surface.

For this next phase of exploration, the company is planning diamond drilling to expand the resource and test an IP anomaly with a geophysical signature estimated to be more than double the size of the Mt Cannindah resource area located just 800m south-west.

The drilling will also test the Cannindah East prospect, which historically intersected 52m at 4.9g/t gold from surface, and is located 600m to the east of the resource area.

Boots on the ground in a month

Cannindah Resources (ASX:CAE) will also undertake additional soil sampling programs in areas to strengthen the intensity of the data set for further identification of additional drill targets across the wider project.

“The board is extremely pleased to have secured $5 million of new equity capital which will put the company in a very strong position to quickly advance the Mt Cannindah copper gold project,” managing director Tom Pickett said.

“The receipt of these funds allows us to move onto a new drilling program to expand the existing resource and to explore a new target situated approximately 700m to the southwest of the current Mt Cannindah resource area.

“We are privileged to have a substantial 14.5Mt copper gold resource already at the project and our aim is to significantly grow the resource into a development asset.”

Ground based activity will be occurring with CAE personnel and contracted geologists mobilising to site over the next two weeks to conduct preliminary work prior to exploration activity.

Drill rigs are expected to be mobilised to site within approximately 2-3 weeks, with drilling to commence shortly thereafter.

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.

Originally published as Cannindah Resources raises $5m and ramps up copper-gold drilling