Cannindah Resources Ltd’s (ASX:CAE) shares closed circa 52% higher on Friday after its channel sampling extended the gold zone at the Piccadilly Gold Mine in Queensland.
The assay results received from the three channels were:
- 8 metres at 6.99 g/t gold;
- 6 metres at 7.57 g/t gold; and
- 8 metres at 2.46 g/t gold.
Importantly, Cannindah has extended the mineralised gold zone by 15 metres to the west of the Piccadilly mine.
The company has confirmed the continuation of gold grades over several metres across strike.
Some of the higher gold grades emanated from the northern side of the slot, suggesting additional mineralisation to the main lode intersected on the southern side.
This opens up more exploration in the previously un-sampled zone to the northwest.
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 company is also continuing to stockpile the material from the exploration activity - with an average grade of 12.6 g/t gold for the representative samples of stockpiled material taken to date.