Cannindah Resources Adds Second Rig as Copper Deposit Grows Beyond Known Boundaries
Key Takeaways
- Cannindah Resources has mobilised a second diamond drill rig to accelerate definition drilling at the Cannindah Breccia, with intersections now returning outside the current MRE boundary in both strike and depth directions.
- The existing Mineral Resource Estimate stands at 14.5Mt @ 1.09% CuEq (as of 3 July 2024), with an updated estimate incorporating 45 additional drill holes targeted for release by end of September 2026.
- Historical drill holes demonstrate mineralisation extending beyond 300m depth outside the previous pit shell, including a 1,022m intercept at 0.48% CuEq — though all three standout holes are at sub-optimal orientation and do not represent true thickness.
- Only approximately 700m of a 2km interpreted mineralised corridor has been systematically drill-tested, leaving the majority of the structural target yet to be evaluated.
- The updated MRE will be reported within optimised Whittle 6 open pit shells and will incorporate updated metallurgical recovery inputs from 2026 testwork, with underground extraction optionality also flagged for future assessment.
Drilling accelerates as Cannindah Breccia shapes up larger than previously modelled
Cannindah Resources has mobilised a second diamond drill rig to site, accelerating definition of resource extensions at the Cannindah Breccia copper-gold deposit at the Mt Cannindah Project. The existing Mineral Resource Estimate (MRE), announced on 3 July 2024, stands at 14.5Mt @ 1.09% CuEq, with an updated estimate targeted for release by end of September 2026. The critical development for investors: ongoing drilling is returning intersections outside the current MRE boundary, and mineralisation remains open along strike to the south and at depth.
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What the latest drilling is revealing
Intersections wider than previously modelled
Mineralised intersection widths at the Cannindah Breccia are proving greater than historically modelled. The company attributes this to historical sampling restrictions and sub-optimal drilling orientations used in earlier programs.
This is a meaningful upward revision to the geological understanding of the system. It suggests the deposit’s physical dimensions were understated in prior modelling, not that new mineralisation has appeared from nowhere. For investors, wider intersections typically translate to a larger resource envelope when updated estimates are compiled.
The current drilling campaign follows an earlier high-grade copper-gold discovery at the project that first signalled the Cannindah Breccia system was performing above initial expectations.
Standout historical intercepts pointing to depth potential
Three historical drill holes demonstrate substantial mineralisation extending beyond 300m depth and outside the previous pit shell outline. All three holes are at sub-optimal orientation, meaning intersection widths reported are not true thickness:
- 493m @ 1.17% CuEq (0.89% Cu, 0.26g/t Au, 15.2g/t Ag) from surface — hole 21CAEDD003
- 341m @ 1.03% CuEq (0.75% Cu, 0.26g/t Au, 14.6g/t Ag) from 58m — hole 22CAEDD009
- 1,022m @ 0.48% CuEq (0.31% Cu, 0.20g/t Au, 5.5g/t Ag) from 64m to end of hole — hole 22CAEDD011
These intercepts are significant not because they are definitive resource numbers, but because they demonstrate the mineralised system extends well beyond the boundaries currently captured in the MRE.
Cameron Switzer, Managing Director and CEO
“The Cannindah Breccia Deposit is continuing to surprise on the upside. With recent results and the ongoing reassessment of historical drill data, we now recognise that this mineralised system is more substantial than was previously envisaged.
“The mobilisation of a second diamond drill rig to site is accelerating the definition of additional mineralisation along strike and at depth, providing further input for potential extensions to the updated Breccia MRE which is due to be completed by the end of September.
“The MRE will provide further information on the scale, significance and financial sensitivities of this project, and will guide near-term exploration activities for future expansions along the entire defined 2,000m strike extent of the fertile structure hosting the breccia mineralisation.”
Understanding the Cannindah Breccia and why resource scale matters
A Mineral Resource Estimate (MRE) is a formal, JORC-compliant calculation of how much mineralised material exists in the ground at what grade. It is categorised by confidence level: Measured (highest), Indicated, and Inferred. For investors, MRE scale and category mix directly affect how a project is valued and how economically sensitive it is to commodity price movements.
When geologists describe a deposit as “open along strike and at depth,” they mean the resource boundary has not been closed off in those directions. Drilling has not yet reached the edge of the mineralised system. That is a bullish geological signal because it indicates the known resource represents a portion of something larger, and continued drilling has the potential to expand it.
A Whittle pit shell is an optimised open-pit outline that defines the most economically viable ultimate pit limit, using specified prices, costs, recoveries, and slope constraints. Reporting a resource within an optimised pit shell adds economic credibility because it screens out material that would cost more to mine than it is worth. The Cannindah Breccia MRE is planned to be reported within such a shell.
Perhaps the most instructive measure of remaining upside: a broad 2km strike mineralised corridor has been interpreted at Cannindah, of which only approximately 700m has been systematically drill-tested. That leaves a substantial portion of the structure yet to be evaluated.
The Mt Cannindah project expansion context is relevant here: the 2km interpreted mineralised corridor represents a much larger structural target than the 700m currently drill-tested, and the company’s broader project development thinking has been evolving alongside each resource update.
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Updated MRE and the path ahead
What the September 2026 MRE update will incorporate
The updated MRE, targeted for release by end of September 2026, will incorporate data from 45 additional drill holes covering 2025 and 2026 drilling. The update is expected to reflect improved understanding of metal distribution, zonation, breccia hanging wall and footwall contacts, and stockwork distribution.
Updated metallurgical recovery inputs based on initial results from 2026 testwork will also be incorporated. The resource is planned to be reported within optimised Whittle 6 open pit shells, using nominal mining rates, processing costs, state royalties, concentrate payabilities, and metal pricing inputs based on 24-month rolling averages.
Beyond open pit: underground optionality flagged
Following receipt of MRE data, the company has flagged that future evaluation activities will also include an assessment of the Cannindah Breccia mineralisation from an underground extraction perspective, as a post open pit extraction opportunity. This represents an additional layer of project optionality rather than a confirmed development pathway.
Existing MRE at a glance
The table below presents the 3 July 2024 MRE for the Mt Cannindah Cu/Au deposit, prepared by independent resource specialists H&S Consultants. CuEq calculations are based on 2021 pricing inputs and will be updated with the new resource estimate.
| Category | Mt | Cu% | Au g/t | CuEq% |
|---|---|---|---|---|
| Measured | 7.1 | 0.77 | 0.41 | 1.15 |
| Indicated | 5.7 | 0.67 | 0.39 | 1.00 |
| Inferred | 1.7 | 0.70 | 0.58 | 1.15 |
| Total | 14.5 | 0.72 | 0.42 | 1.09 |
With the September 2026 MRE update drawing closer, the addition of a second rig and 45 drill holes of new data means the revised estimate has the potential to materially reshape the picture of what sits beneath Mt Cannindah.
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