• Compliance officers with the ASX wrote to Cannindah yesterday requesting more information about recent trading activity.
• Cannindah has eclipsed an 82% gain in the last week of trading, sparking the ASX interest.
• The company did note note a presentation made at its AGM from December 2021 regarding assay due in early January 2022.
• In the last 12 months, the Cannindah share price has soared over 1000%.

Shares in mining exploration company Cannindah Resources Ltd (ASX: CAE) are cruising well ahead of all benchmarks today. At the time of writing, stock in the company is now trading 20% higher at 35.5 cents apiece.

Momentum has been strong this past week for Cannindah, with shares bounding off a low of 21 cents on Monday.

As such Cannindah has eclipsed an 82% gain in the last week of trading, and the ASX hasn't overlooked the feeding frenzy either.

Compliance officers with the ASX wrote to Cannindah yesterday requesting more information about this trading activity, in search of any potential explanation from the company, to which it replied today. Let's take a look.

Why's the Cannindah share price soaring today?

The ASX wrote to Cannindah asking if it were aware of any information that could explain the recent trading in its securities, to which the company replied "no".

However, when prompted for an explanation in the absence of any such information, Cannindah was a little more forthcoming.

Whilst the company acknowledged that there is no reason "relating to its activities or its financial position that would give rise to the price change", it did note a presentation made at its AGM from December 2021.

In its AGM, the company noted that assay results from the balance of hole 4 and for holes 5 to 8 from the Mt Cannindah project were due in "early January 2022".

Hence the company appears to think there is some speculative trading activity surrounding the timing of this announcement, as is often the case in news-sensitive sectors like mining and biotech for example.

Although, Cannindah advised that "results from the remainder of hole 4 through to hole 8 have yet to be received, reported and interpreted".

Aside from this point, Cannindah also said its shares are tightly held by a large major shareholder, along with "a number of long-term shareholders", and that trading activity by these players from 14 to 18 January 2022 is "likely to inspire significant price movements".

Otherwise, there are no other reasons that Cannindah can allude to that pinpoints the recent uptick in price and volume of its shares.

Regarding the assay results from above, the company says it will update the market as soon as the geological reporting is on hand.

Cannindah Resources share price summary

In the last 12 months, the Cannindah share price has soared over 1000% in an impressive display on the chart.

After this most recent rally, shares have climbed another 103% and are up more than 82% in the last 5 days of trading.

The post Cannindah Resources (ASX:CAE) share price rockets 21% after ASX response appeared first on The Motley Fool Australia.

In somewhat surprising fashion, the mineral explorer's share price plummeted following a company update outlining progress at its Mt Cannindah site.

While the company reported positive assay results from its exploration program, the market responded otherwise, sending its shares southwards.

So what happened? Analysing market trade data and the company's announcement, we uncover what went down for Cannindah's share price today.

What did Cannindah announce?

Cannindah advised it had obtained assay results from a drillhole at its Mt Cannindah site in Queensland. The results now indicate a major expansion in known copper, gold, and silver mineralisation.

The company notes the mineralised zones are divided into three subsections.

These are labelled as a "surface oxide zone" of up to 14 metres from the surface. This is followed by a "supergene zone" from 14-33 metres in depth. Each zone contains copper, according to the company's update.

There is also a supergene zone from 14 metres to 177 metres with a number of different grades and concentrations of resource.

All in all, the company intersected copper in hole 3 of its drilling program "aggregating to 493m @ 1.17% copper equivalent (0.89% Cu, 0.26g/t Au, 15.2g/t Ag)" from the surface.

For reference, 'copper equivalent' is the combined value of all economic metals in the intersected zone, with their value adjusted to an equivalent grade of copper, usually in US dollars.

It is widely accepted that anything over 100 metres and 1% copper equivalent or better is considered to be high grade.

Curiously, the release notes that Cannindah is drilling existing holes to examine the deep plunge of the copper mineralised zone at Mt Cannindah.

With this effort, it has "pushed on further down plunge to the west and discovered previously unknown or poorly delineated copper zones".

So what happened with the Cannindah share price today?

The market responded poorly to the company's announcement today, sending its shares well into negative territory.

Examining trade tickets from a trade summary provided by Bloomberg market data, we see a dump of almost 20 million Cannindah shares that occurred on Australian exchanges today.

A particularly large bloc trade of 225,000 shares in two lots was also executed through broker Credit-Suisse First Boston (CSFB).

In addition, there were 11 trades of more than 100,000 shares today for Cannindah's float with more than 60% of these occurring within the first hour of trading.

Overall, there were a total of 2,482 trades completed today for Cannindah shares. That's around 256% higher than yesterday and more than 570% above last Friday's session.

With this scurry of trading activity where large volumes of the company's shares exchanged hands, the picture starts to form as to what pulled the rug beneath Cannindah investors on Tuesday.

Aside from the project update and ensuing trading activity, there was no other remarkable market news out of Cannindah's camp today.

At the close, the Cannindah share price finished at 33 cents apiece, down from 57 cents on Monday.

Cannindah share price snapshot

In the past 12 months, the Cannindah share price has soared more than 1,078%, rallying 965% this year to date.

These returns are light years away from the benchmark S&P/ASX 200 Index (ASX: XJO)'s return of just 20% over the same time.

The post Cannindah Resources (ASX:CAE) share price just tanked 42%. What on earth happened? appeared first on The Motley Fool Australia.

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

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.

The post Cannindah Resources (ASX:CAE) share price surges 30% on assay results appeared first on The Motley Fool Australia.

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.

The post The Cannindah (ASX:CAE) share price is up 6% today. Here's why appeared first on The Motley Fool Australia.

At the time of writing, shares in the company have retreated slightly and are swapping hands for 7.9 cents each – up 154.84%. By contrast, the All Ordinaries Index (ASX: XAO) is currently down 0.61%.

Let's take a closer look at what the miner reported.

What did Cannindah Resources announce?

The Cannindah Resources share price is on fire after the miner declared "significant" deposits of copper, gold, and silver at its Mt Cannindah project in central Queensland.

Some of the ore found at the site include:

• an 82m thick breccia containing 2.32% copper
• a 118.3m thick breccia containing 1.99% copper
• a 36m thick breccia containing 8.65g of gold per tonne

The company claims there is approximately 90,000 tonnes of copper, 60,000 ounces of gold, and over 2.5 million ounces of silver. At current commodity prices, these finds have estimated values of US$806 million, $1.04 billion, and $64.5 million, respectively.

To understand how monumental the find is for Cannindah Resources, keep in mind the mining company's market capitalisation is about $24 million.

The site is 100% owned and operated by Cannindah Resources.

Future prospects of gold, silver, and copper

Both gold and silver are currently coming off five-year peaks from August last year. Trading Economics forecasts the prices of both metals to continue declining in the near future. However, the gold price is still 16.1% higher than this time last year, while silver is 111.7% higher over the same period.

Copper's commodity price is expected to continue growing this year, and possibly into next year. Many consider copper's price to be a reflection of the health of the economy. Since economic woes are expected to improve as COVID-19 subsides, its price is improving.

As well, copper is an essential metal in producing climate-friendly technology. The rise in demand for green technology is fuelling a boom in the naturally abundant metal.

Cannindah Resources share price snapshot

This time last year, one share in Cannindah Resources would have cost the average investor 0.8 cents. Since that time, the value of the company has grown by around 890%. A very tidy return on investment for those with enough foresight.

The post Why the Cannindah Resources (ASX:CAE) share price is leaping 155% today appeared first on The Motley Fool Australia.