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- Cannindah Resources (CAE) has highlighted the potential of its Mt Cannindah Project as well as posted unreviewed results for the first half of FY21
- Previous exploration by the likes of Newcrest Mining (NCM) returned high-grade gold, copper and silver results from both wide and narrow intercepts at the Queensland-based project
- In addition to areas that have returned pleasing results, Mt Cannindah hosts under-explored areas, which offers significant exploration upside potential
- Cannindah plans to utilise data from previous work while the prices and demand for these metals are high
- In terms of its results, the metals explorer slashed its total net loss by nearly half compared to the prior corresponding period
- Unfortunately, Cannindah used up $735,725 on operating and exploration activities after allocating nearly $680,000 to suppliers and employees
- The company expects to seek extra capital to support exploration and other activities over the next 12 months
- Cannindah is up 184 per cent on the back of this news to trade at 8.8 cents
Cannindah Resources (CAE) is up 184 per cent after highlighting the potential of its Mt Cannindah Project and releasing financial results for the first half of FY21.
Mt Cannindah
Major Australian miners, such as Mt Isa Mines and Newcrest Mining (NCM), have previously conducted extensive drilling and exploration activities across the Mt Cannindah resource area.
These activities resulted in high-grades, including 82 metres at 2.32 per cent copper, 0.88g/t gold and 42.1g/t silver and 66 metres at 1.99 per cent copper, 0.52g/t gold and 33.3g/t silver.
Drilling also returned high-grade gold, including grades of up to 8.65g/t and 4.9g/t gold, as well as wider intercepts including 123 metres at 0.99g/t gold and 146 metres at 0.5g/t gold.
Additionally, previous drilling returned wider intercepts of lower-grade copper including 139 metres at 0.71 per cent copper, 149.04 metres at 0.48 per cent copper and 163.16 metres at 0.51 per cent copper.
The Mt Cannindah Project is located in central Queensland. It has a JORC 2004 mineral resource of 5.5 million tonnes at 0.92 per cent copper, 0.34g/t gold and 14.9g/t silver.
Other prospects within the project have a combined mineral resource containing over 10 million tonnes — however, these aren’t JORC-compliant.
Pleasingly, the existing resources and their location indicates the project hosts a large-scale intrusive-related porphyry and breccia-style system. Even more encouraging are the project’s as-yet under-explored mining leases, which provide a significant exploration upside potential.
Given the prices for gold, copper and silver are higher than when previous explorers were drilling, Cannindah’s review has identified significant potential for the QLD-based project.
The company plans to take full advantage of the previous work to develop the project while copper, gold and silver are in high demand.
Half-yearly results
Cannindah has recorded a total net loss of $435,310 for the six months ending December 31 2020. Positively, however, this represents nearly half of the loss incurred in the prior corresponding period.
In terms of earnings, the company received $16,823 from COVID-19 relief support and interest. However, due to a hefty $679,344 being paid to suppliers and employees, Cannindah used up $735,725 on operating and exploration activities.
At the end of the six-month period, the metals explorer had $86,482 in cash and plans to seek additional capital in the next 12 months to support exploration activities. The extra funding will most likely come from capital raises and loans.
These figures are preliminary unreviewed results and will be formally audited by April 16, 2021.
Cannindah’s shares are up 184 per cent on the back of this news to trade at 8.8 cents at 1:16 pm AEDT.
