Cannindah Resources (ASX:CAE) share price surges 30% on assay results

The company's shares are on the move today…

The Cannindah Resources Ltd (ASX: CAE) share price is rocketing to an all-time high today. This comes as the copper and gold company announced impressive assay results from its recent drilling operations.

During morning trade, Cannindah shares rose to a record high of 16 cents and are now trading at 15 cents apiece.

happy miner with arms in the airs standing in front of a mine

Image source: Getty Images

What were the results?

In its announcement, Cannindah advised the first assay results from Mt Cannindah have returned with significant copper and gold credits.

As such, the first drill hole (21CAEDD001) was abandoned after hitting old workings and mining voids at 6 metres deep.

The second hole (21CAEDD002) drilled mostly copper mineralised and sulphidic breccia over a depth of 330 metres. The intersection from the top portion (from ground level to 151 metres) achieved the following:

  • 117 metres at 1.01% copper, 0.39 grams per tonne of gold, and 28 grams per tonne of silver from 34 metres to 151 metres

Cannindah noted assays are currently waiting for the second part of the drill (from 150 metres to 330 metres). Initial visual indications suggest the rock contains primary copper mineralisation.

The third hole (21CAEDD003) has encountered a strong amount of copper mineralisation, with chalcocite rich supergene material from 15 metres to 33 metres. The hole was originally planned for a depth of 250 metres but extended to 762.5 metres. Assay results are pending but look extremely positive.

Cannindah is seeking to expand its current 5.5 million tonne JORC resource, with half of its ore reserves falling into the Indicated category. This represents a confident level of geological knowledge in Mt Cannindah containing probable copper, gold and silver credits.

About the Cannindah share price

Over the past 12 months, Cannindah shares have gained an incredible 525% with year-to-date up over 380%.

Based on today's price, Cannindah commands a market capitalisation of around $77.8 million and has approximately 518.9 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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