Quarterly Activities Report
Brisbane, July 29, 2022 AEST (ABN Newswire) - The quarter has been another very busy one for Cannindah Resources Limited (
ASX:CAE) with excellent results achieved from all holes completed increasing size, grade and producing new discoveries at the flagship Mt Cannindah project.
Further to the excellent exploration outcomes during the quarter, the nine mining leases at Mt Cannindah were renewed until the 31st of March 2034. Highlights of the current quarter are discussed in more detail below with reference to the drilling and relevant ASX releases.
Following on from the successful drilling in the previous quarter Cannindah Resources Limited (CAE) continued drilling providing more excellent results. Assay results from hole #9 released during the quarter at Mt Cannindah showed an impressive 400m @ 0.91%CuEq*, along with a new gold zone of 14m @ 1.65g/t Au from 285m. Copper with associated gold and silver mineralisation were intermittently developed and present from 400m to the end of hole at 877.6m depth. Significant copper zones within the hydrothermal infill breccia include 39m @ 1.48%CuEq from 61m, 107m @1.23%Cu from 160m, 64m @ 1.02CuEq along with a significant gold zone which occurs below the high-grade copper of 14m @ 1.65g/tAu (see ASX release dated 4th and 5th of April 2022).
These excellent results during the quarter were also followed up with hole 10 delivering another large 295m intercept @ 1.45%CuEq. This hole drills to the northwest through and beyond the previously interpreted northern end of the mineralized envelope at the Mt Cannindah breccia.
Importantly this result is from surface and includes a supergene zone of 11.5m @ 2.19%Cu from 12.5m. Much like hole #9 hole #10 encountered a lower gold zone from 287m 8m @ 2.25 g/t Au including a high-grade zone of 3m @ 5.52 g/t Au from 292m (See ASX release dated 12th of May 2022).
The busy nature of the quarter continued in February with the ASX release discussing the results of hole 11 217m @ 1.47% CuEq. Hole 11 like hole 10 before it continued the drive to the north being the northernmost hole that CAE has drilled at Mt Cannindah to date. This hole provided some excellent grades the highlights were 11m at 3% Cu from 183m includes 4m @ 4.52% Cu, 4.07g/t Au, and 97.8g/t Ag from 190m. (see ASX release 27th of June 2022).
Corporate
During the quarter the company successfully raised capital to continue drilling via a placement to a new sophisticated and professional investor at a significant premium to the 30-day VWAP of the company at the time to raise $1.0M AUD (see ASX release dated 1st of July 2022). We have been using these funds for exactly that and have been getting excellent results. We intend for this to continue as it has in previous quarters.
Access to funding remains adequate for our planned and current programs across both projects. As is often the case with successful exploration programs the board should consider various proposals/strategies for future funding and other matters and will update shareholders at the appropriate time.
Payments to related parties for the period (refer Section 6 of the Appendix 5B*) totalled $661,000 and represented payment of Director's fees, salary and related party geological and accounting services.
Exploration and evaluation expenditure during the quarter was $766,000. As the company is a mining exploration company, no mining production or development activities occurred during the quarter.
The cash balance at the date of this report (29 July 2022) is $0.86 million. The company remains debt free.
The Board is currently working through the usual commercial discussions that occur when commercial transactions are contemplated. The company will update shareholders on any discussions regarding any potential transactions relating to the company where appropriate and always in accordance with the ASX listing rules.
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/63964JX2
About Cannindah Resources Limited
Cannindah Resources Limited is an ASX-listed (ASX:CAE) Queensland, Australia-based exploration and resource development company. We are focused on copper and gold mineral exploration, evaluation, and progressing various mineral projects.
Cannindah's goal is to preserve shareholder wealth and grow the value of the flagship asset with prudent exploration methods. Our focus is to progress further exploration work at the Piccadilly Project and review the possible strategies for Mount Cannindah Project.
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