Cannindah Resources Drill Breakthrough Confirms Mt Cannindah Porphyry System

Major Drill Breakthrough Validates Large-Scale Porphyry System at Mt Cannindah

Cannindah Resources Ltd drill breakthrough at Mt Cannindah has delivered exceptional results, with final assays from 2025 reconnaissance drilling confirming the large-scale nature of the Southern Porphyry Copper Gold System. The results establish a 700-metre strike zone of broad continuous mineralisation with clear metal vectors pointing toward what appears to be a significant porphyry centre.

The standout intersections include 148m @ 0.27% CuEq and 172m @ 0.18% CuEq from the latest holes, complementing previously announced results including 28m @ 1.15% CuEq that ended in mineralisation. These broad zones, combined with increasing grades and intersection thickness in a clear southerly direction, indicate the company is closing in on what could be a transformational discovery.

Furthermore, with a $17 million cash position and diamond drilling commencing shortly to test the system's high-priority southern and eastern extensions, Cannindah Resources Limited (ASX:CAE) is well-funded to aggressively pursue what Managing Director Cameron Switzer describes as a "potentially transformational target."

Drilling Confirms Textbook Porphyry System Development

The 2025 nine-hole reconnaissance programme has systematically defined the Appletree Centre Target, with results demonstrating all the classic hallmarks of a major porphyry system in development. Moreover, the systematic approach has revealed compelling evidence of proximity to a major intrusive centre.

Key Drilling Highlights

The drilling programme has delivered consistently strong results across multiple intervals, highlighting the system's scale and continuity.

Broad Mineralised Intervals:

• 25CRC015: 148m @ 0.27% CuEq (0.18g/t Au, 0.09% Cu) from 112m
• 25CRC020: 172m @ 0.18% CuEq (0.04g/t Au, 0.10% Cu) from 118m
• 25CRC013: 90m @ 0.33% CuEq from 184m (previously announced)

High-Grade Evidence:

• 25CRC016: 28m @ 1.15% CuEq (1.25g/t Au, 0.11% Cu) from 298m, ending in mineralisation
• 25CRC015: 6m @ 2.69% CuEq from 196m with elevated gold similar to 25CRC016

Critical System Indicators:

• Intrusive dykes observed in multiple holes indicating potential intrusive centres
• Metal ratio variability showing Cu > Au on periphery transitioning to Au > Cu toward centre
• Copper minerals (chalcopyrite) within stockwork veins
• Altered intrusive dykes providing strong evidence of nearby mineralised porphyry centre

Management Commentary on the Discovery

"We initially recognised this Southern Porphyry opportunity in mid-2025, and with each subsequent phase of exploration activity, the prospectivity and potential of this opportunity continues to expand and be upgraded… Our mineralised intersections indicate extensive drilling is required and demonstrate a clear indication of a fertile intrusive centre," stated Cameron Switzer, Managing Director.

Understanding Porphyry Systems: Why These Results Matter

What is a Porphyry Copper-Gold System?

Porphyry systems represent some of the world's largest and most valuable copper-gold deposits, typically forming around large intrusive centres where metal-rich fluids create extensive zones of mineralisation. In addition, these systems are characterised by several key features:

• Scale: Often spanning kilometres with hundreds of millions to billions of tonnes
• Metal Distribution: Metal ratios change systematically with distance from the intrusive centre
• Depth Continuity: Mineralisation typically extends to significant depths (>1000m)
• Broad Intersections: Lower-grade zones surrounding higher-grade cores

Why the Discovery Pattern is Significant

Cannindah Resources Ltd drill breakthrough at Mt Cannindah shows a 700-metre strike length with increasing grades and metal tenor toward the south. However, the transition from copper-dominant to gold-dominant zones suggests the company is systematically tracking toward a major intrusive centre.

The results mirror discovery patterns at world-class deposits including Cadia-Ridgeway (NSW), North Parkes (NSW), and Red Chris (Canada). Consequently, these parallels suggest significant potential for a major discovery.

Southern Target: A System of Exceptional Scale and Potential

Target Definition and Scale

Geological Evidence Supporting Scale

Surface Indicators:

• High-order soil anomalies with coincident Cu, Au, and Mo values
• Outcropping iron oxide-magnetite-chlorite-garnet rock alteration
• Porphyry-style veining with copper oxides
• Large IP chargeability anomaly up to 110mv/V

Exploration Target:

• 64Kt to 114Kt CuEq over 850m strike (near-surface zone only)
• Multiple intrusive centres indicated by complex magnetic character
• 180m of topographic relief providing excellent drilling platforms

Vector Analysis Points to Major Discovery Potential

The systematic increase in several key parameters provides compelling evidence for major discovery potential.

The systematic increase in:

1. Grade and intersection thickness southward
2. Mineralisation tenor associated with intrusive dyke development
3. Metal ratio transition from Cu-dominant periphery to Au-rich centre

These vectors, combined with the no previous drilling east or south of the current intersections, indicate significant exploration upside in the primary target directions. Furthermore, the geological vectors suggest proximity to a major porphyry centre.

Strategic Position and Funding Strength

Mt Cannindah Project Overview

The project's strategic location and established infrastructure provide significant advantages for exploration and potential development.

Current Resource Base

Mt Cannindah Breccia MRE (July 2024):

• 14.5Mt @ 0.72% Cu, 0.42g/t Au, 1.09% CuEq
• 104.8Kt copper, 197.3Kozs gold, 158.3Kt CuEq
• Resource category: Measured + Indicated + Inferred

Financial Position and Upcoming Catalysts

Funding Strength:

• $17 million cash position for aggressive exploration
• Well-funded for extensive diamond drilling programme

Immediate Catalysts:

• Diamond drilling programme commencing to test southern and eastern extensions
• Resource expansion drilling continuing at Mt Cannindah Breccia (7 of 12 planned holes completed)
• First assay results from resource expansion programme expected in March
• General Meeting scheduled for 18 March 2026

Investment Thesis: Multiple Pathways to Value Creation

Primary Value Drivers

The investment thesis is supported by multiple value creation pathways, each offering significant potential returns.

1. Porphyry Discovery Potential

• 700m strike zone of mineralisation with clear targeting vectors
• System characteristics matching world-class deposits
• No previous drilling in highest-priority target areas

2. Resource Expansion Opportunities

• Existing 14.5Mt resource at Mt Cannindah Breccia
• Active expansion drilling programme underway
• Multiple prospects across 17+ known occurrences

3. Strategic Location Advantages

• Established mining jurisdiction in Queensland
• Proximity to Gladstone infrastructure and port facilities
• Historical mining operations prove economic viability

Comparative Analysis: Porphyry Discovery Value

Why Should Investors Follow Cannindah Resources?

Cannindah Resources Ltd drill breakthrough at Mt Cannindah positions the company at a critical inflection point in Australian copper-gold exploration. The systematic approach to targeting the Southern Porphyry System has delivered textbook results that indicate proximity to a major discovery.

Key Tracking Points for Investors

Immediate Catalysts (Next 3-6 Months):

1. Diamond drilling results from southern and eastern target extensions
2. Resource expansion results from Mt Cannindah Breccia programme
3. System definition progress with deeper drilling to >1000m depths

Medium-Term Value Drivers (6-18 Months):

1. Resource estimate updates incorporating new drilling
2. Porphyry centre definition through systematic step-out drilling
3. Multiple prospect advancement across the 17+ known occurrences

Strategic Differentiators:

• Experienced management with 37 years in porphyry systems globally
• Well-funded exploration position with $17M cash
• World-class geological setting analogous to major NSW and Canadian discoveries
• Established infrastructure in proven mining jurisdiction

Investment Takeaway

The breakthrough results demonstrate a 700-metre strike zone of porphyry-style mineralisation with all indicators pointing toward a major intrusive centre. With $17 million in funding and diamond drilling commencing shortly, the company is positioned to potentially deliver one of Australia's next significant copper-gold discoveries. The combination of textbook porphyry indicators, untested high-priority targets, and strong financial backing makes CAE a compelling exploration story for 2026.

Glossary of Key Terms

Understanding the technical terminology is essential for following the exploration progress and assessing the discovery potential.

CuEq (Copper Equivalent): A metric combining copper, gold, silver and molybdenum values into a single copper-equivalent percentage, allowing easier comparison of multi-metal intersections.

Porphyry System: Large-scale water-based mineral deposits formed around intrusive igneous centres, characterised by dense networks of mineral-bearing veins and extensive metal distribution patterns.

Stockwork Veining: Dense networks of thin mineral-bearing veins typically associated with porphyry-style mineralisation.

Chalcopyrite: Primary copper mineral formed from hot fluids during initial deposit formation, as opposed to secondary weathering processes.

IP Chargeability: Induced Polarisation geophysical measurement indicating the presence of sulfide minerals, often associated with copper-gold mineralisation.

Cannindah Resources Ltd drill breakthrough at Mt Cannindah represents a significant milestone in the company's systematic exploration of what appears to be a world-class porphyry copper-gold system. With strong financial backing and clear targeting vectors pointing toward a major discovery, investors have multiple catalysts to track over the coming months as the company advances this potentially transformational asset.

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