Cannindah Resources Ltd (ASX:CAE) has started a resource expansion drilling program at its Cannindah Breccia copper-gold deposit in central Queensland, targeting what it believes could be a higher-grade “Gap” zone within the existing 14.5Mt at 1.09% CuEq Mineral Resource Estimate.
The Gap is a 275-metre-long section within the broader 600 metre breccia strike where a combination of lower drill density, earlier sub-optimal drill orientations that did not adequately test the high-grade footwall structure, and historical sampling omissions due to high-grade cut-offs has created an apparent void in the current resource model.
Recent drilling from its 2025 program helped define the opportunity, with strong results at both ends of the Gap zone.
At the northern end, a recent hole returned 278 metres at 1.16% CuEq from surface. At the southern end, drilling returned 120 metres at 1.16% CuEq from 30 metres, including 60 metres at 1.94% CuEq from 48 metres.
The company believes these results point to a mismatch between drill density and interpreted grade in the existing model and has moved to systematically test the intervening section.
12-hole program underway with potential to expand
The initial drilling campaign will comprise 12 holes for around 3,000 metres, with scope for additional drilling should results continue to support the geological interpretation. Once the program is complete and all assays are received, Cannindah plans to update the mineral resource estimate.
Managing director and CEO Cameron Switzer said recent high-grade copper and gold results had created “a tremendous opportunity to upsize the current Mineral Resource”.
“The delivery of the 2025 high grade copper and gold results at the Cannindah Breccia deposit has resulted in the recognition of a tremendous opportunity to upsize the current Mineral Resource.
“These results, along with the subsequent interpretation using all current and historical data, have identified the potential to not only increase the total metal inventory of the deposit, but importantly indicates that we have the opportunity to increase the overall average grade of the deposit.
“The importance of the grade opportunity cannot be overstated as a future potential financial driver. We look forward to the delivery of positive results and of course the completion of a safe, money in the ground investment work program.”
Second rig mobilised for Southern Porphyry target
Cannindah has secured a second rig, which is expected to start drilling at the Southern Porphyry copper-gold target within the next four weeks.
The Southern Target represents a substantial copper-gold system, pointing to a recent intersection of 28 metres at 1.15% CuEq that ended in mineralisation. Cannindah interprets the result as potentially intersecting the upper or outer halo of a high-grade gold-copper “pencil” porphyry system.
The Cannindah Breccia Mineral Resource, defined in July 2024, totals 14.5Mt at 1.09% CuEq, containing an estimated 105,000t copper, 197,000oz gold and 6.4Moz silver. The resource is reported within an open pit to 350 metres below surface, with drilling intersecting mineralisation to 1,086 metres downhole.
The Mt Cannindah Project is located about 90 kilometres southwest of Gladstone and 27 kilometres northeast of Monto in central Queensland and comprises nine mining leases and two enveloping exploration permits.