Cannindah Resources Limited (ASX: CAE) (Cannindah or the Company) has kicked off an aggressive resource expansion drilling program at its Cannindah Breccia copper-gold deposit in central Queensland. The Company is targeting what it calls the “GAP” zone, a 275-metre stretch within the deposit where previous drilling returned standout intercepts but remains underexplored.
The move comes as Cannindah looks to upsize its existing 14.5 million tonne resource grading 1.09% copper equivalent. Managing Director Cameron Switzer described the opportunity as potentially transformative, noting that increasing the deposit’s average grade could significantly improve project economics.
“The delivery of the 2025 high-grade copper and gold results at the Cannindah Breccia deposit has resulted in the recognition of a tremendous opportunity to upsize the current Mineral Resource,” Switzer said.
Figure 1: Location of the Cannindah Breccia in central Queensland, 90km southwest of Gladstone [Cannindah Resources Limited]
What Makes the GAP Zone Special?
The GAP zone emerged from detailed analysis of 2025 drilling results and historical data. It represents a 275-metre section where several factors converged to create an apparent gap in the resource model:
- Lower drill data density compared to northern areas
- Previous drill holes were oriented sub-optimally for testing high-grade footwall structures
- Historical sampling was not undertaken due to the higher economic cut-off grades used in the 1970s
Recent drilling at both ends of this zone delivered compelling results:
Northern End:
- 278m @ 1.16% CuEq from surface
Southern End:
- 120m @ 1.16% CuEq from 30m
- Including 60m @ 1.94% CuEq from 48m
These intersections demonstrate high-grade continuity over significant widths and vertical distances, starting from near the surface. The results confirm that the eastern strike extensions of the mineralisation remain open and under-tested.
Figure 2: Isometric view looking NE of Cannindah Breccia MRE [Cannindah Resources Limited]
Drilling Program Details
Cannindah has mobilised its first rig to target the GAP zone with an initial 12-hole program totalling approximately 3,000 metres. Depending on the results, additional drilling will follow to fully define the zone’s potential.
A second rig has been secured and will commence drilling at the Southern Porphyry Copper-Gold Target within four weeks. Recent results from this area included 28m @ 1.15% CuEq that ended in mineralisation, interpreted as the upper halo of a high-grade gold-copper porphyry system.
“The importance of the grade opportunity cannot be overstated as a future potential financial driver,” Switzer added. “We look forward to the delivery of positive results and, of course, the completion of a safe, money-in-the-ground investment work program.”
Figure 3: Location plan showing 2025 RC drill holes and the GAP zone within the Cannindah Breccia resource [Cannindah Resources Limited]
Understanding the Cannindah Breccia Deposit
The Cannindah Breccia is a 600m by 100m zone of fractured, brecciated material sitting on a major north-northeast trending fault. This fault marks the contact between an intrusive diorite and hornfelsed metasedimentary rocks.
Since 2021, Cannindah has completed 25 diamond drill holes at the deposit, leading to the July 2024 resource estimate of:
- 14.5 million tonnes @ 1.09% CuEq
- 105,000 tonnes of copper
- 197,000 ounces of gold
- 6.4 million ounces of silver
The resource extends from surface to 350 metres depth in the current model, but drilling has intersected mineralisation to 1,086 metres downhole. This suggests substantial depth potential beyond the current resource shell.
The deposit sits within a larger hydrothermal system at Mt Cannindah, which hosts at least 17 significant copper, gold, and molybdenum occurrences. Small-scale mining operated from 1884 to 1920, followed by a leaching operation from 1947 to 1965.
Copper and Gold Markets Provide Strong Backdrop
The timing of Cannindah’s expansion program aligns with robust fundamentals in both copper and gold markets.
Copper prices have remained above USD 9,000 per tonne through early 2026, supported by supply constraints and growing demand from electrification and renewable energy infrastructure. Gold continues its strong run, recently trading significantly above USD 3000 per ounce.
Figure 4: Copper price chart [Trading Economics]
Central bank buying, geopolitical uncertainty, and inflation concerns continue to drive safe-haven demand. Australia remains the world’s second-largest gold producer after China, with Queensland contributing significantly to national output.
For a mid-cap explorer like Cannindah, these elevated commodity prices enhance project economics and provide a favourable environment for resource development.
Project Infrastructure and Location
Mt Cannindah sits 90km southwest of Gladstone and 27km northeast of Monto in central Queensland. The project comprises nine mining leases and two exploration permits, covering a well-endowed copper-gold district.
The region benefits from established infrastructure, including sealed roads, grid power, and skilled mining workforces. Gladstone’s deep-water port provides direct export access for concentrate shipments.
Queensland’s stable regulatory environment and strong track record in mining development provide additional confidence for advancing projects through feasibility and into production.
Figure 5: Location map of the Mt Cannindah Project [Cannindah Resources Limited]
Investor Outlook
Cannindah Resources continues to build momentum as it systematically explores and expands its flagship Cannindah Breccia deposit. The identification of the GAP zone demonstrates how detailed geological work and modern interpretations can unlock value from historical mining districts.
The upcoming drilling program offers near-term catalysts as assay results flow through. Success in proving up additional high-grade mineralisation could materially improve the project’s grade profile and overall economics.
As of 10th February 2026, Cannindah Resources (ASX: CAE) shares were trading at $0.051, reflecting market interest in the Company’s systematic approach to resource expansion.
Key metrics:
- Current price: $0.051 per share
- Market cap: Approximately $63.88 million
Figure 6: CAE price chart [ASX]
The Company maintains a disciplined exploration strategy, focusing capital on high-conviction targets within proven mineralised systems. This approach reduces geological risk while maximising the potential for resource growth.
What’s Next?
Drilling is now underway at the GAP zone, with first assay results expected over the coming weeks. The Company plans to provide regular updates as results become available.
Following completion of the initial 12-hole program and receipt of all data, Cannindah will update its Mineral Resource Estimate. Any material grade or tonnage improvements could trigger advancement toward feasibility studies.
The mobilisation of a second rig to test the Southern Porphyry Target adds another dimension to the exploration story. If successful, this could open up an entirely new copper-gold system separate from the Cannindah Breccia.
For investors seeking exposure to Australian copper-gold development in a rising commodity price environment, Cannindah Resources presents a compelling story. The combination of an existing resource, clear growth targets, and systematic exploration provides a solid foundation for potential value creation.
As Cameron Switzer noted, the focus remains on executing safe, well-planned programs that deliver returns for shareholders through discovery and resource growth.
