Cannindah Resources: Major Upgrade to Mt Cannindah Resource
CAE (CAE) Share Update October 2024 Thursday 31st
Cannindah Resources Announces Significant Upgrade to Mt Cannindah JORC Resource
Cannindah Resources Limited (ASX: CAE) has announced a substantial upgrade to its Mineral Resource Estimate (MRE) for the Mt Cannindah project, marking a significant milestone in its exploration efforts.
Instant Summary:
- Copper metal tonnes increased by 117%, total resource increased by 183%.
- Gold ounces increased by 229%, silver ounces increased by 148%.
- Resource extraction assumed via open pit method to 350m depth.
- Majority of MRE classified as Measured and Indicated under 2012 JORC Code.
- Company completed a $5 million capital raise with Canaccord Genuity.
Resource Upgrade Details
On July 3, 2024, Cannindah Resources Limited announced a significant upgrade to the Mineral Resource Estimate (MRE) for its Mt Cannindah project. The updated MRE, prepared by H&S Consultants, shows a remarkable increase in the estimated resources. Copper metal tonnes have surged by 117%, and the overall resource has expanded by 183% at a cut-off grade of 0.3% CuEq.
The gold and silver resources have also seen substantial increases, with gold ounces rising by 229% and silver ounces by 148%. These upgrades underscore the potential of the Mt Cannindah project as a significant contributor to the company's future growth.
Future Exploration Plans
The company plans to conduct additional drilling to further expand the MRE and test other high-priority targets located southwest of the current resource area. The MRE assumes that mineral resources can be extracted using an open-pit method down to a depth of 350 meters, with the resource starting at the surface and remaining open along strike and at depth.
Financial and Operational Overview
During the quarter, Cannindah Resources completed a $5 million capital raise, with Canaccord Genuity acting as lead manager. The company currently holds $4,688,285 in cash. No exploration drilling occurred during the quarter as the focus was on capital raising and planning for the upcoming drilling program.
Exploration and evaluation expenditure for the quarter amounted to $77,000. The company did not engage in any mining production or development activities during this period.
The upgrade to the Mt Cannindah resource is a positive development for Cannindah Resources, potentially enhancing the company's valuation and attractiveness to investors. The significant increase in copper, gold, and silver resources may lead to increased investor interest and confidence in the company's exploration capabilities.
Investor Reaction:
Analysts are likely to view the resource upgrade favorably, given the substantial increases in resource estimates. The successful capital raise further supports the company's exploration plans, potentially boosting investor confidence.
Conclusion:
Investors should consider the potential long-term benefits of Cannindah Resources' upgraded MRE and the company's plans for further exploration. Staying informed about upcoming drilling results and strategic developments will be crucial for making informed investment decisions.