Cannindah Resources Limited (ASX: CAE) has kicked off a significant diamond drilling programme at its highly prospective Southern Porphyry Target at the Mt Cannindah Project in central Queensland, marking what the Company describes as a pivotal milestone in its growth strategy.
As detailed in the ASX announcement on 30 March 2026, the first diamond drill hole is underway. It involves re-entering and extending the previously completed reverse circulation (RC) hole 25CRC016, which previously yielded a high-grade intersection of 28 metres at 1.15% copper equivalent (CuEq) from 292 metres to the end of the hole.
The Company interprets drillhole 25CRC016 as having intersected the potential upper levels of a significant copper-gold porphyry system, a geological setting that, if confirmed at depth, could prove transformational for Cannindah and its shareholders.
Figure 1 : Aerial map of the Mt Cannindah Project showing the location of the Southern Porphyry Target and Eastern Porphyry Target relative to the Cannindah Breccia MRE [Cannindah Resources]
A Major Drilling Programme Targeting Depth and Scale
The Company has launched a minimum 10,000-metre Phase 1 diamond drilling programme targeting high-priority zones to the south and east of the successful 2025 RC drilling campaign. That earlier programme identified a suite of porphyry vectors that are characteristic of world-class copper-gold systems, including:
- Increasing grade and intersection thickness with depth
- An increased level of intrusive dykes carrying gold and copper mineralisation
- The development of high-grade zones within the broader mineralised envelope
- Increasing gold values associated with copper at depth
Drilling will initially focus on the eastern 700 metres of the overall 2,000-metre-long Southern Target, with each hole capable of reaching depths exceeding 1,200 metres. A second drill rig will complete step-out pre-collars to the south and east of the Southern Target before transitioning to diamond drilling to test greater depths.
Cameron Switzer, Managing Director and CEO, Cannindah Resources Limited, who brings 37 years of geological experience across porphyry and porphyry-related copper-gold systems globally, remains confident in the scale of the opportunity:
“The commencement of diamond drilling on the Southern Porphyry Target is a pivotal time in the growth aspirations for all Cannindah stakeholders. To date all the exploration data suggests the presence of a significant copper-gold mineralized porphyry body which, if confirmed, would be transformational for the Company.” — Cameron Switzer, Managing Director and CEO, Cannindah Resources Limited
Figure 2: Phase 1 diamond drilling target area (yellow outline) within the broader Southern Porphyry Target zone, with mining lease boundaries and surface reconnaissance area marked. [Cannindah Resources]
The Southern Target: A World-Class Porphyry System in the Making?
Located on the southern margin of the Monument Intrusive Complex, the Southern Target spans a surface dimension of 2,000 metres east-west by 800 metres north-south and remains open to both the west and south. The target carries a compelling multi-element footprint, including coincident copper (+1,000 ppm), gold (+0.1 ppm), and molybdenum (+70 ppm) soil anomalism over zones of outcropping hematite-magnetite-chlorite and garnet skarn.
A large induced polarisation (IP) chargeability anomaly of up to 110 mV/V further underpins the target, alongside high-order conductors, dramatic topographic relief of up to 180 metres, and evidence for narrow dykes carrying copper, molybdenum, and gold in the lower zones.
An Exploration Target of 64 Kt to 114 Kt CuEq has been estimated over a strike length of 850 metres, representing only the near-surface shallow outer skarn mineralisation.
Mr Switzer drew comparisons with some of Australia’s most celebrated porphyry copper-gold mines, stating:
“This target requires drill testing to the appropriate depths which initially may be in excess of 1,200m below surface. As evidenced elsewhere in Australia, for example at the porphyry copper-gold mines at Cadia-Ridgeway and North Parkes in NSW, mineralized porphyry systems can have vertical extents greater than 1,800m and we are preparing to test similar targets at Mt Cannindah.”
Surface Reconnaissance and Breccia Resource Drilling Continue
Cannindah has also resumed surface exploration on the western portion of the Southern Target. This previously untested zone shows promising alteration, brecciation, and veining typical of porphyry systems.
Resource expansionary RC drilling also continues at the Mt Cannindah Breccia Mineral Resource Estimate (MRE), with the initial 12 holes completed and additional holes currently underway. The existing MRE stands at 14.5 Mt at 1.09% CuEq, comprising:
- Measured: 7.1 Mt at 1.15% CuEq (81.2 Kt CuEq)
- Indicated: 5.7 Mt at 1.00% CuEq (57.4 Kt CuEq)
- Inferred: 1.7 Mt at 1.15% CuEq (19.7 Kt CuEq)
The Company holds approximately $17 million in cash, providing a well-funded platform to aggressively explore both the potentially transformational Southern Target and expand the current Cannindah Breccia MRE.
About the Mt Cannindah Project
Located 90 kilometres southwest of Gladstone in central Queensland and 27 kilometres northeast of Monto, the Mt Cannindah Project comprises nine Mining Leases and two enveloping EPMs. The site hosts at least 17 significant copper, gold, and molybdenum mineralised occurrences, each defined by multiple pits, located adjacent to and peripheral to the Triassic-age Monument Intrusive Complex.
Small-scale mining operated at Mt Cannindah from 1884 to 1920, followed by a leaching operation from 1947 to 1965. Modern exploration recommenced in 2021. The hydrothermal system represents a classically zoned porphyry-related centre of Triassic age, hosting diverse deposit styles including porphyry-related breccias, skarns, stockworks, and late-stage high-sulphidation gold-arsenic veins.
Figure 3: Regional location map of the Mt Cannindah Project showing proximity to Gladstone and the town of Monto in central Queensland, and nearby gold and copper mines. [Cannindah Resources]
Investors’ Outlook
Cannindah Resources (ASX: CAE) entered this campaign with a strong financial and operational foundation. Following the announcement, the Company’s share price rose 3.03% to $0.034, with a market capitalisation of approximately $45.7 million.
With a current price of $0.034 and a 52-week low of $0.015, the stock trades well below its 52-week high of $0.075, suggesting meaningful re-rating potential if the Southern Porphyry Target delivers the scale of copper-gold mineralisation that the geological data implies. A confirmed porphyry discovery of meaningful scale would likely attract institutional attention and could dramatically re-price Cannindah’s market capitalisation relative to peers operating in similar geological settings.
Investors should note that at approximately $45.7 million market cap, Cannindah is valued relatively modestly against the scale of exploration underway. The Company’s $17 million cash position represents more than a third of its current market capitalisation, providing a substantial runway to advance exploration without near-term dilution risk.
The key catalysts to watch for in coming months include:
- Assay results from the extended diamond drill hole at 25CRC016
- Results from step-out diamond drilling to the south and east of the Southern Target
- An updated MRE for the Cannindah Breccia incorporating the current RC drilling results
- Reconnaissance findings from the western portion of the Southern Target
- The Company’s presentation at RIU Sydney on 5–7 May 2026
The convergence of geological, geochemical, and geophysical data at Mt Cannindah presents one of the more compelling exploration stories currently active on the ASX.
Disclaimer: This editorial has been prepared for informational and editorial purposes only. It does not constitute financial product advice, investment advice, or a recommendation to buy, sell, or hold any security, including shares in Cannindah Resources Limited (ASX: CAE). The information contained herein is based on the Company’s ASX release dated 30 March 2026 and publicly available data at the time of writing.
Readers should not rely on this editorial as the basis for any investment decision. Past share price performance is not indicative of future performance. Exploration results, Mineral Resource Estimates, and Exploration Targets discussed in this article are subject to the assumptions, risks, and uncertainties inherent in early-stage resource exploration, and there is no guarantee that further drilling will confirm or expand the mineralisation described.
Last modified: April 8, 2026
