Cannindah Resources Limited (ASX: CAE) has announced a significant opportunity to expand its high-grade copper-gold-silver resource at the Mt Cannindah Breccia in Queensland, Australia. The Company revealed that recent drilling results have identified a circa 270-metre “Gap Zone” with substantial potential for resource growth.
This development builds on the Company’s successful 2025 exploration campaign, which delivered exceptional high-grade intersections and secured A$4.5 million in funding to advance multiple targets at the flagship Mt Cannindah Project.
This development comes as global copper markets face supply constraints, with analysts forecasting prices to reach US$12,500 per tonne by mid-2026 amid surging demand from data centres, renewable energy, and electrification initiatives.
The Gap Zone Opportunity
The identified target area spans approximately 270 metres of the total 600-metre resource strike where drilling density remains limited. This zone sits between high-grade results at both the northern and southern ends of the breccia.
Recent drilling has delivered impressive intersections bookending this gap:
Southern End Results:
- 120m @ 1.16% CuEq from 30m, including 60m @ 1.94% CuEq from 48m (25CRC002)
Northern End Results:
- 278m @ 1.16% CuEq from surface (22CAE008)
Earlier in the 2025 campaign, the Company also reported standout results from the first step-out hole 25CRC001, which returned 52 metres at 1.18% CuEq from 4m, including a high-grade zone of 22 metres at 2.63% CuEq from 32m.
The results demonstrate high-grade continuity over 140 metres vertical distance from near surface, extending the mineralised zone an estimated 35 to 40 metres to the east.
Figure 1: Long section showing near-surface high-grade target in relation to drill density at Cannindah Breccia [Cannindah Resources Limited]
Why This Matters
Cameron Switzer, Managing Director and CEO of Cannindah Resources, explained the significance:
“Our successful 2025 drilling at the breccia was based on updated geological interpretation and has now delivered Cannindah the opportunity to further upgrade the breccia MRE in 2026. The recognition of the drill data density impact on the mineralisation distribution is a unique opportunity to potentially upgrade an already exciting MRE. The contrast between the northern portion and the southern portion is striking. This drill program has the potential to once again upgrade the Cannindah Project.”
Figure 2: Cameron Switzer, Managing Director and Chief Executive Officer [Cannindah Resources Limited]
The southern portion of the Cannindah Breccia represents nearly 50% of the total breccia strike length yet contains only 22% of the total copper equivalent tonnes in the mineral resource. This disparity stems from significantly lower drill data density compared to the northern portion.
Where zones of high drill data density exist, such as the northern extent of the breccia, copper distribution displays good continuity at a 1% Cu isosurface. In areas with lower drill data density, the continuity of the 1% Cu isosurface is less well developed.
Current Resource Base
The Mt Cannindah Breccia currently hosts a 14.5 million tonne @ 1.09% CuEq mineral resource estimate containing:
- 105,000 tonnes Copper
- 197,000 ounces Gold
- 6,400,000 ounces Silver
This resource is reported within an open pit to 350 metres below surface, whilst drilling has demonstrated mineralisation extends to 1,086 metres downhole.
The Mt Cannindah Breccia is a 600m by 100m zone of variable fractured brecciated material located on a major NNE trending faulted lithological contact between an intrusive diorite and a hornfelsed metasedimentary sequence.
Figure 3: Mt Cannindah Project prospect locations [Cannindah Resources Limited]
Upcoming Drill Campaign
A 12-hole drill program specifically targeting zones of potential high grade with low drill data density will commence in January 2026. The Company has completed site works to enable drilling to test and potentially upgrade this target.
The program aims to increase drill data support in the southern portion of the resource, potentially converting inferred resources and expanding the overall mineralisation footprint.
Additionally, assays remain pending for nine holes drilled into the potentially transformational Southern Porphyry Target, with results expected imminently. This target displays a substantial 1,500m x 100-700m soil geochemical anomaly indicative of porphyry Cu-Au potential.
Multiple Growth Catalysts at Mt Cannindah
Beyond the Cannindah Breccia, the Company is advancing two large-scale under-explored porphyry targets funded by the A$4.5 million capital raise completed in September 2025:
Southern Target: Spans 1,500m x 100-700m with high-grade trenching results delivering exceptional intersections. The target includes the Monument Exploration Target estimate of 64-114Kt CuEq announced in October 2025.
Eastern Target: Covers 1,700m x 400m dominated by Mt Cannindah’s strongest IP chargeability anomaly (>100 mV/V coherent zones), with three scout holes (>320m depth) recently completed.
Strong Market Backdrop for Copper-Gold
Cannindah’s exploration program comes amid an exceptionally bullish outlook for both copper and gold markets in 2026.
Copper Market Dynamics
Global copper markets are experiencing significant tightening due to supply disruptions and accelerating demand. J.P. Morgan Global Research projects copper prices could reach US$12,500 per tonne in Q2 2026, averaging approximately US$12,075/t for the full year.
Figure 4: Copper Price Forecasts [J.P. Morgan Global Research]
Key drivers include:
- Supply Constraints: Major production disruptions at Indonesia’s Grasberg mine, Chile’s El Teniente, and the Democratic Republic of Congo’s Kamoa-Kakula have tightened global supply
- Data Centre Demand: Copper demand from data centre installations is forecast to reach approximately 475,000 tonnes in 2026, up 110,000 tonnes versus 2025
- Electrification Trends: Demand from renewable energy infrastructure, electric vehicles, and grid modernisation continues to accelerate
- Mine Supply Growth: Global copper mine supply growth has fallen to only 1.4% in 2026, approximately 500,000 tonnes lower than estimates at the beginning of 2025
Gold Market Strength
Gold has entered 2026 with exceptional momentum, reaching record highs above US$4,800 per ounce in January 2026. J.P. Morgan Global Research forecasts gold prices averaging US$5,055 per ounce by Q4 2026.
Figure 5: Gold price forecast [J.P. Morgan Global Research]
Supporting factors include:
- Central Bank Demand: Price-inelastic central banks continue providing steady gold demand, marking a 17th consecutive year of net official sector purchases
- ETF Inflows: North American gold ETFs have recorded US$77 billion of inflows through 2025, adding over 700 tonnes to holdings
- Safe-Haven Appeal: Geopolitical tensions and trade uncertainties continue driving investors toward gold
- Monetary Policy: Federal Reserve easing and declining real yields support gold’s investment case
Location and Infrastructure
The Mt Cannindah Project is strategically located approximately 100 kilometres south of Gladstone, Queensland. The Project benefits from established infrastructure including road access, power supply, and proximity to processing facilities and export ports.
Queensland’s stable regulatory environment and established mining sector provide an attractive setting for resource development.
Figure 6: Mt Cannindah Project Location [Cannindah Resources Limited]
Investor’s Outlook
Cannindah Resources has positioned itself to benefit from the convergence of strong copper-gold fundamentals and a significant near-surface exploration opportunity at the Mt Cannindah Breccia.
The 12-hole drill program launching in January 2026 represents a targeted approach to potentially upgrade the existing resource by addressing areas of lower drill data density. Success could materially enhance the Project’s economics and development timeline.
With copper forecast to average between US$10,000 to US$12,500 per tonne in 2026 and gold targeting US$5,000 per ounce, Cannindah’s multi-commodity project offers exposure to two of the strongest performing commodities in the global market.
Market Information:
As of 22nd January 2026, Cannindah Resources Limited (ASX: CAE) shares are trading at A$0.043 per share. The Company’s 52-week range stands at A$0.017 to A$0.098 per share, with a market cap of A$43.32 million.
Figure 7: CAE Price Chart [ASX]
The combination of near-term drilling catalysts, robust market conditions for copper and gold, and a substantial existing resource base positions Cannindah Resources as a Company worth watching in Australia’s copper-gold exploration sector throughout 2026.
