Cannon (ASX:CNR) share price rockets 39% on first drill results

The company’s shares are breaking a new record today.

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The Cannon Resources Ltd (ASX: CNR) share price is racing to incredible highs following the company’s first drill results.

During morning trade, Cannon shares rose to an all-time high of 45 cents before being driven lower by profit takers. At the time of writing, its shares are now up 39.29% to 39 cents.

What were the results?

In today’s update, Cannon advised it has received assay results from its drilling campaign at the Fisher East Nickel Project in Western Australia.

The first 3 diamond drill holes have highlighted significant zones of high-grade nickel sulphides at the Musket prospect. They included the following:

  • 14.94 metres at 1.90% nickel from a depth of 366.15 metres in hole MFED083
  • 4.94 metres at 1.79% nickel from a depth of 559.77 metres in hole MFED084
  • 5.81 metres at 2.29% nickel from a depth of 584.35 metres in hole MFED088

Cannon stated that the drilling intercepted substantial thicknesses of mineralisation on the northern margin of the main channel (MFED083). This extended the mineralisation to roughly 100 metres below the existing Musket resource.

The drilling program successfully identified mineralisation trends and is expected to lead to future follow-up drilling.

Cannon CEO Steve Lynn commented:

The diamond drilling results and DHEM modelling are an excellent and significant development at Musket and highlight our ability to predict mineralisation trends and grow the orebody.

The assay results show that the mineralisation continues down-plunge at better than the average grade of the existing resource. The system is totally unconstrained at depth and laterally within the northern mineralisation trend. This current round of drilling confirms that significant resource growth can be expected with well targeted future drilling.

Cannon commenced a diamond drilling campaign at the Camelwood, Musket and Sabre prospects in August 2021. While drill results have been collected for Musket, assays are still pending for Camelwood and Sabre.

Down-hole electromagnetics surveys are currently underway on existing holes. It is anticipated that these will be completed over the next 10 to 15 days.

About the Cannon share price

Since listing on the ASX in August, Cannon shares have gained almost 90% for the period, reflecting positive investor sentiment.

Cannon presides a market capitalisation of about $25 million and has approximately 66.4 million shares on its books.

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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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