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.

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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.

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