The Cannindah (ASX:CAE) share price is up 6% today. Here's why

Cannindah Resources Ltd (ASX: CAE) share price is flying high after news of the company's Piccadilly Gold Project was released.

| More on:
Hand holding gold nugget reflecting Newcrest Mining share price today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Cannindah Resources Ltd (ASX: CAE) shares are rocketing today after news of the company's Piccadilly gold project was released.

The Cannindah share price shot up to an intraday high of 11 cents in opening trade, 37.5% higher than yesterday's close. Shares in the gold miner have retreated since then and are currently trading at 8.5 cents, a 6.2% gain.

Let's take a look at the latest announcement from the exploration and resource development company.

Striking gold at Piccadilly

Cannindah announced it has discovered significant gold trenches at the Piccadilly project, extending the area of interest within its existing mining lease. The project is about 60km north of Charters Towers in Queensland.

The company said the most recent results were from a drill program completed at Piccadilly last month and once more demonstrated the site's potential.

Some 1-metre-wide channels returned results of up to 27.5 grams of gold per tonne, with other wider zones containing up to 29 grams of gold per tonne.

In past assay results, the Piccadilly project was found to contain high-grade gold samples, with the highest found to date being 79.4 grams of gold per tonne.  

The miner undertook the most recent drilling program to find the distribution of surface gold in the central and eastern sections of the Piccadilly Mining Lease.

It excavated 26 trenches at a 1.5 metre depth in an area of historic shallow mining. There were 1,500 metres worth of trenches in total.

Cannindah share price snapshot

The boost to the Cannindah share price on the back of the company's latest assay results might see it reaching a milestone. If today's gains hold until close, it will see Cannindah shares closing at their highest price since 2012.

Currently, the Cannindah share price is up 190% year to date. It's also up 770% over the last 12 months.

The company has a market capitalisation of around $41 million, with approximately 518 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Opinions

Are Fortescue shares a contrarian buy after falling 20% in a month?

Are investors putting too much weight on the jitters of the market or is the Fortescue fall fair?

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the FY25 outlook for Fortescue shares compelling?

Can the iron ore miner deliver a strong result in FY25?

Read more »

Miner looking at a tablet.
Resources Shares

5 reasons everyone's talking about Fortescue shares this week

The miner's name has been buzzing this week.

Read more »

A mountain bike rider navigates down a bumpy track, indicating uncertain economic times ahead
Resources Shares

Uh-oh! Are ASX copper shares about to hit a speed bump?

ASX copper stocks could be about to hit a rough patch. But why?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

What's the outlook for ASX 200 mining shares in FY25?

Let’s dig into some of the factors for miners in the 2025 financial year.

Read more »

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price
Resources Shares

2 ASX mining shares rocketing over 16% on big news

Investors are getting very excited about these shares today.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat and working for Superior Resources does the thumbs up in front of an open pit copper mine, indicating positive news for the company's share price today following a significant copper discovery
Resources Shares

Why are these experts so bullish on ASX copper shares?

ASX copper shares could lead the charge higher into 2025. But why?

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

What's happening with the big 3 ASX 200 iron ore stocks today?

BHP, Rio Tinto and Fortescue are eyeing an ongoing economic slowdown in China.

Read more »