Mt Cannindah Copper-Gold Project: Latest Drilling Success
Cannindah Resources (ASX: CAE) has announced outstanding results from its latest diamond drilling program at the Mt Cannindah Copper Gold Project, with hole 24 delivering 71 meters at 0.95% copper equivalent within a broader mineralised zone of 274 meters at 0.49% copper equivalent. These Cannindah Resources Ltd copper-gold drilling results showcase the project's significant potential as a major copper-gold resource in Queensland.
Drilling Extends High-Grade Mineralisation Beyond Existing Resource
The first hole from the company's 2025 drilling program has successfully extended known mineralisation beyond the existing resource boundaries, while filling a critical data gap between previously drilled holes 13 and 19. Cannindah's Queensland copper project continues to demonstrate promising results that could significantly impact Australia's copper production landscape.
The impressive intersection includes:
• 71m @ 0.95% CuEq (0.75% Cu, 0.2 g/t Au, 10.4 g/t Ag) from 127m
• Including 20m @ 1.1% Cu and 0.28 g/t Au from 132m
This substantial zone sits within an even larger mineralised envelope of:
• 274m @ 0.49% CuEq (0.35% Cu, 0.14 g/t Au, 5.9 g/t Ag) from 82m to 356m
Particularly noteworthy for investors are the high-grade gold intercepts, including:
• 1m @ 31.07 g/t Au from 464m to 465m
• 1m @ 5.14 g/t Au, 0.15% Cu, 18.3 g/t Ag from 338m
The Cannindah Resources Ltd copper-gold drilling results demonstrate excellent continuity of copper mineralisation and provide strong evidence of potential high-grade zones or "shoots" within the broader mineralised envelope.
Understanding Hydrothermal Breccia: Key to Mt Cannindah's Value
Hydrothermal breccias are geological formations created when hot, mineral-rich fluids fracture rock, creating angular fragments (clasts) that are then cemented together by minerals deposited from these fluids. At Mt Cannindah, these breccias are particularly enriched with copper, gold, and silver minerals.
The Cannindah Breccia measures approximately 600m in strike length, up to 100m wide, and extends 350m deep with a steep westerly dip. This formation is primarily filled with economically valuable minerals including chalcopyrite (copper sulphide), gold, and silver.
Why this matters to investors: Hydrothermal breccias often contain higher concentrations of metals than surrounding rock, making them prime targets for mining. The extensive nature and high-grade zones within Mt Cannindah's breccia system suggest significant extraction potential, especially given the project's established infrastructure and promising metallurgical characteristics.
Project Context and Growth Potential
The Mt Cannindah Copper Gold Project, located south of Gladstone near Monto in central Queensland, already boasts a substantial mineral resource estimate of 14.5 million tonnes at 1.09% copper equivalent (0.72% Cu, 0.42 g/t Au, 13.7 g/t Ag), announced in July 2024.
The current mineralised system represents only 15% of the total surface area of the Cannindah Mineral System, suggesting tremendous upside potential. The system is defined as a 2km by 2km area of coincident anomalous copper, gold, and molybdenum geochemistry.
Managing Director Tom Pickett emphasised this potential: "These outstanding results further demonstrate the continuity of the high-grade zone and support 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."
Market Implications and Commodity Outlook
These discoveries come at a critical time for the copper market. Iron ore and steel market trends often overshadow copper developments, but the red metal is experiencing strong demand driven by the global energy transition. Furthermore, BHP's production surge in iron ore and copper highlights the strategic importance major miners are placing on copper assets.
Recent geopolitical developments, including the impact of Trump's tariffs on ASX iron ore majors, demonstrate the volatile nature of commodity markets. However, copper remains well-positioned due to its essential role in renewable energy infrastructure and electric vehicles.
Additionally, Cannindah Resources may benefit from Australia's revolutionary critical minerals tax incentives designed to transform global supply chains, as copper is increasingly viewed as a critical mineral for the energy transition.
Future Exploration Plans
Cannindah Resources has already completed three holes in the 2025 drilling program, with assays pending, and is preparing to commence a fourth hole. The drilling program is now targeting major IP (Induced Polarisation) anomalies proximal to the existing resource.
Of particular interest is the company's plan to begin drilling toward what it describes as "the large exciting prospect known as the south west IP anomaly" – potentially opening up an entirely new mineralised area.
Why Investors Should Take Notice
Cannindah Resources presents a compelling investment case for several key reasons:
1. Resource Growth Potential: The latest drilling confirms mineralisation continues beyond the existing resource boundaries, with only 15% of the total mineral system currently explored.
2. High-Grade Discovery: The consistent high-grade intersections, particularly the gold values exceeding 30 g/t, suggest potential for high-margin extraction zones.
3. Established Resource Base: The existing 14.5Mt resource provides a solid foundation, with the latest results likely to contribute to future resource upgrades.
4. Clear Development Path: The company has already conducted metallurgical testing showing excellent recoveries for copper, gold, and silver, suggesting straightforward processing options.
5. Strategic Location: Located in mining-friendly Queensland with access to infrastructure, the project benefits from favourable geography and logistics.
The technical observations from the drilling program provide valuable insights into the orientation and characteristics of the mineralisation. For instance, the core samples show that hornfels clasts are often slab, shingle or splinter-like with their long axes aligned normal to the drill core axis, indicating structural controls on the mineralisation that can guide future exploration efforts.
The combination of consistent high-grade copper results alongside significant gold credits makes the Mt Cannindah project particularly attractive in the current commodity price environment, where both metals are experiencing strong demand fundamentals.
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