Cannindah Resources Ltd’s (ASX:CAE) shares were last trading 24% higher intra-day after recovering significant gold grades from samples at its Piccadilly mine site in Queensland.
Piccadilly has been mined historically by mining the rich quartz veining located within the mining lease.
Cannindah is presently evaluating potentially economic target areas within this quartz vein system.
The discovery of a parallel vein system, located in the footwall, has provided some interesting results with the highest sample returning 2 metres at 16.05 g/t gold.
The slot that is currently being assessed has been extended by a further 40 metres and significant gold grades continue to be recovered in samples.
The area of recent sampling is now circa 115 metres in length and continues to be further evaluated by Cannindah.
An additional aspect of the recent sampling was the confirmation of gold values of 3.64 g/t gold from representative sampling of 1 metre wide dipping units.
The original result was later followed up in the same zone with 2.56 g/t gold being returned from 1 metre channel sampling.
This result is regarded as highly significant, as it has been returned from a selectively altered geological unit rather than just being contained within the narrow quartz veining.
Up until this sampling, gossanous quartz veining has been regarded as a perquisite for gold grades at Piccadilly.
The possibility now opens up for gold to be present across wider altered lithological units, thus increasing the potential for bulk tonnage.