Cannindah Resources Strikes High-Grade Copper-Gold in Latest Drilling
Cannindah Resources (ASX: CAE) has reported exceptional copper-gold-silver mineralisation from its first hole in the 2025 drilling program at the Mt Cannindah Project in Queensland, demonstrating significant resource expansion potential beyond the company's existing mineral resource estimate. This high-grade copper-gold discovery by Cannindah Resources Ltd represents a major step forward for the Cannindah Queensland Copper project, reinforcing its status as an emerging copper-gold asset.
Outstanding Copper-Gold Intersection Extends Known Mineralisation
The company has intersected an impressive 71m at 0.95% copper equivalent (comprising 0.75% Cu, 0.2 g/t Au, 10.4 g/t Ag) from 127m downhole in its latest diamond drill hole. This high-grade copper-gold discovery by Cannindah Resources Ltd sits within an even more extensive mineralised envelope of 274m at 0.49% copper equivalent (0.35% Cu, 0.14 g/t Au, 5.9 g/t Ag) from 82m to 356m.
Of particular interest to gold investors, the hole also encountered zones of exceptional gold grades, including:
• 1m at 31.07 g/t Au from 464m
• 1m at 5.14 g/t Au (with 0.15% Cu and 18.3 g/t Ag) from 338m
This latest drilling has successfully filled a gap between previous high-grade holes and extended mineralisation beyond the current resource boundaries, highlighting the continuity of the copper-gold system at Mt Cannindah.
Expanding an Already Substantial Resource Base
The results come just months after Cannindah Resources announced a significant resource upgrade in July 2024. The company's Mt Cannindah deposit currently hosts:
| Category | Mt | Cu% | Au g/t | Ag g/t | CuEq% |
|---|---|---|---|---|---|
| Measured | 7.1 | 0.77 | 0.41 | 15.4 | 1.15 |
| Indicated | 5.7 | 0.67 | 0.39 | 12.2 | 1.00 |
| Inferred | 1.7 | 0.70 | 0.58 | 12.0 | 1.15 |
| Total | 14.5 | 0.72 | 0.42 | 13.7 | 1.09 |
In metal terms, this equates to 104,800 tonnes of copper, 197,300 ounces of gold, and 6.4 million ounces of silver. These figures highlight the potential to expand the existing 14.5Mt resource as new drilling continues to intercept significant mineralisation.
Understanding Hydrothermal Breccias: Key to Mt Cannindah's Mineralisation
The mineralisation at Mt Cannindah is hosted within a hydrothermal breccia system – a critical geological feature in many major copper-gold deposits globally. Hydrothermal breccias form when high-pressure, mineral-rich fluids fracture existing rock, creating angular fragments (clasts) that become cemented together by minerals deposited from the fluids.
At Mt Cannindah, this process has created a 600m long by up to 100m wide breccia zone that extends to at least 350m depth, characterised by:
• Angular fragments of hornfels and porphyry rock
• Infill material containing copper minerals (chalcopyrite), gold, and silver
• Alteration minerals including sericite, carbonate, quartz, and chlorite
The latest drilling shows the breccia zone contains higher-grade "shoots" within a broader mineralised envelope, providing the company with multiple exploration targets.
Aggressive Exploration Program Underway
Cannindah is wasting no time in advancing exploration at Mt Cannindah, with:
1. The third hole of the 2025 program already completed
2. The fourth hole about to commence, targeting a large IP anomaly to the southwest
3. Plans to test major IP (Induced Polarization) anomalies proximal to the existing resource
The significance of these anomalies should not be understated – IP surveys are particularly effective at identifying sulfide mineralisation similar to what hosts the copper-gold at Mt Cannindah.
Substantial Future Growth Potential
What makes the Mt Cannindah project particularly compelling for investors is that the current resource represents just 15% of the total surface area of the identified mineral system. Managing Director Tom Pickett highlighted this point, noting "the clear upside potential of the Cannindah Mineral System given that only 15% of the total surface area of the system hosts the 158,000t Cu equivalent that currently makes up the 14.5Mt Cannindah Mineral Resource."
The high-grade copper-gold discovery by Cannindah Resources Ltd further supports the company's exploration focus on:
1. Extensions to the known Cannindah breccia
2. The high-grade gold zones recently identified
3. Reinterpretation of numerous remaining prospects within the broader mineral system
Why Investors Should Pay Attention to Cannindah Resources
Cannindah Resources presents a compelling investment case for several key reasons:
1. Resource Growth Trajectory: The latest drilling results demonstrate clear potential to expand the existing 14.5Mt resource.
2. High-Grade Potential: The discovery of extremely high-grade gold zones (up to 31 g/t) adds a valuable dimension to the predominantly copper-focused project.
3. Exploration Upside: With only 15% of the identified mineral system tested, the project has substantial room for growth.
4. Attractive Metals Mix: The copper-gold-silver combination provides exposure to both industrial and precious metals markets.
5. Active Drilling Program: With three holes completed in 2025 and more planned, investors can expect regular news flow.
The high-grade copper-gold discovery by Cannindah Resources Ltd at Mt Cannindah appears particularly well-timed given the strong fundamentals for both copper and gold in the current global market environment.
As Cannindah continues its systematic exploration of the Mt Cannindah project, the company appears well-positioned to deliver additional resource growth and potentially define a significantly larger mineral system than currently estimated. Furthermore, the high-grade nature of recent intercepts and the substantial size of the untested mineral system make this a project worth monitoring closely.
The high-grade copper-gold discovery by Cannindah Resources Ltd represents an important milestone in the company's development of the Mt Cannindah Project, reinforcing the significant potential for resource expansion and ongoing exploration success in this historically productive mineral district of Queensland.
Looking to Capitalise on the Next Major Mineral Discovery?
Stay ahead of the market with Discovery Alert's proprietary Discovery IQ model, which instantly identifies significant ASX mineral discoveries like Cannindah's copper-gold find and transforms them into actionable investment opportunities. Visit the dedicated discoveries page to understand how early investors in major mineral discoveries have historically achieved substantial returns.
