Cannindah Resources Limited (ASX: CAE) (“Cannindah” or “the Company”) has entered a value-accretive growth phase, underpinned by high-grade drilling success, disciplined capital deployment, and an expanding understanding of a district-scale critical minerals copper–molybdenum–gold system at its flagship Mt Cannindah Project in Queensland.
Against a backdrop of tightening global copper supply and accelerating demand driven by electrification, renewable energy, defence, and digital infrastructure, Cannindah is positioning itself as an emerging Australian critical minerals developer, leveraging copper and molybdenum alongside gold and silver by-products.
Strengthening the Balance Sheet to Fund Growth
During the September 2025 quarter, the Company completed a fully underwritten non-renounceable Entitlement Offer, raising approximately $4.5 million before costs. Canaccord Genuity (Australia) Limited underwrote the offer, with strong support from Board members, reinforcing confidence in Cannindah’s strategy.
The funds are being deployed to:
- Expand the existing Cannindah Breccia Mineral Resource Estimate (MRE).
- Advance drilling at two large-scale, under-explored porphyry targets, the Southern Target and the Eastern Target.
- Accelerate systematic exploration across the Mt Cannindah Project.
Chairman at the time, Mr Michael Hansel, described the quarter as “a hectic period”, highlighting the successful capital raising and the commencement of drilling as pivotal milestones in building long-term value for shareholders.
High-Grade Extensions Confirmed at the Cannindah Breccia
Cannindah’s extensional drilling at the Cannindah Breccia has delivered exceptional results. The first step-out hole, 25CRC001, returned a standout intersection of 52 metres at 1.18% CuEq from 30 metres, including 22 metres at 2.63% CuEq. This was followed by an even more compelling result from drillhole 25CRC002, which intersected 120 metres at 1.16% CuEq, including 60 metres at 1.94% CuEq.
These results:
- Confirm high-grade continuity over a vertical interval exceeding 100 metres.
- Extend mineralisation 35–40 metres east of the current MRE.
- Identify a previously unrecognised steeply dipping footwall zone with near-surface potential.
Chief Executive Officer Mr Cameron Switzer stated that these intersections “can materially improve project economics” and emphasised the importance of targeting high-grade material close to the surface.
Unlocking Near-Surface High-Grade Potential
Subsequent interpretation identified a 200–250 metre drill data gap between known high-grade zones to the north and south of the Cannindah Breccia. This gap represents an immediate opportunity to define additional near-surface copper-gold mineralisation within the existing 600-metre strike length.
According to Chief Executive Officer, Mr Switzer, the relationship between drill density and grade is now “readily apparent”, and further drilling in early 2026 will prioritise this high-impact target area.
Southern Target Delivers Outstanding Trench Results
The Southern Target displays a substantial 1,500m x 100-700m soil geochemical anomaly (>1,000ppm Cu, 0.1ppm Au, 70ppm Mo), corroborated by geological mapping, rock chips, trenching, historical drilling, IP chargeability, and magnetic data – all indicative of pencil-style porphyry Cu-Au potential beneath outcropping skarn mineralisation. High-grade trenching results from the 500m x 100m Appletree-Dunno skarn/intrusive zone were announced 16 Oct 2025 (ASX: CAE), alongside the 27 Oct 2025 Monument Exploration Target estimate of 64-114Kt CuEq. Remaining open west, south, and east, it has seen limited modern porphyry exploration.
Eastern Target Shows Scale and Geophysical Strength
The Eastern Target spans 1,700m x 400m as a covered prospect dominated by Mt Cannindah’s strongest IP chargeability anomaly (>100 mV/V coherent zones), extending along the NW-trending Kalpowar Fault down to 70 mV/V, with widespread magnetite signatures and overlapping high-intensity magnetic highs. Historical shallow drilling intercepted anomalous Cu-Au-Mo skarn, bolstered by elevated rock chips (ASX: CAE 2 Jun 2025). Three scout holes (>320m depth) have been completed, with results detailed here.
Mt Cannindah Project Overview and Resource Base
The Mt Cannindah Project is located approximately 90 kilometres southwest of Gladstone and hosts multiple copper-gold-molybdenum occurrences associated with the Monument Intrusive Complex. The flagship Cannindah Breccia currently hosts a JORC-compliant MRE of 14.5 million tonnes at 1.09% CuEq, containing approximately 158,000 tonnes of copper equivalent metal.
Key attributes include:
- Strong structural controls on high-grade mineralisation.
- Multiple untested strike and depth extensions.
- Proven metallurgical recoveries for copper, gold, and silver.
Figure 4: Mt Cannindah Project – Location Map
Leadership Transition Supports Execution
In December 2025, Cannindah appointed Mr Cameron Switzer as Managing Director and CEO, following his tenure as Interim CEO. Mr Switzer brings over 35 years of experience in copper-gold exploration and porphyry systems, aligning directly with the Company’s growth strategy.
Incoming Chair Mr Tony Rovira noted that Mr Switzer has “significantly increased our understanding of the Mt Cannindah Copper-Gold Project” and is well positioned to lead the Company through its next growth phase.
Figure 5: Cameron Switzer, Managing Director and Chief Executive Officer of Cannindah Resources
Copper Market Tailwinds Strengthen the Investment Case
Cannindah’s progress coincides with robust global copper fundamentals, marked by record prices that hit $13,310 per tonne on January 12, 2026, up nearly 20% in just weeks amid supply disruptions and surging demand. The market size reaches 27.34 million tons in 2026 (from 26.29 million in 2025). It is projected to grow to 33.27 million tons by 2031 at a 4.01% CAGR, with Asia-Pacific accounting for 70% and China’s refining dominance leading the region. Forecasts highlight structural deficits: ICSG at 150,000 tons of refined copper in 2026, Morgan Stanley at 590,000 tons, due to mine growth slowing to 0.9-2.3% from declining grades (below 0.7%) and permitting delays.
Figure 6: Global Copper Fundamentals
Demand Drivers
- Electrification & Renewables: 5x copper per MW vs. fossil fuels; HVDC cables for offshore wind consume thousands of tons per project.
- EVs: Global fleet hits ~116 million in 2026 (30% growth), using 3-4x more copper (e.g., 183 lb per EV) plus chargers.
- AI/Data Centers: Hyperscale facilities deploy 2,000+ tons each for busbars and cooling amid power surges.
Supply Challenges
Mine production lags at 0.9% growth; concentrate deficits eyed at 500,000 tons, concentrate shortages, and capex doubling to $15,000-20,000/tonne. Recycling aids at 5.42% CAGR but can’t fully bridge gaps.
These dynamics elevate Cannindah’s Cu-Au-Mo assets, with high-grade extensions and porphyry targets poised for value in a deficit market.
Investor Outlook
As of 18 January 2026, Cannindah Resources (ASX: CAE) shares were trading at $0.04, reflecting a 2.56% daily increase and a one-year gain of 16.23%. The Company’s market capitalisation stands at approximately $41.26 million.
With substantial funding, demonstrated high-grade extensions, multiple large-scale targets, and exposure to favourable copper market dynamics, the Company is positioned for continued news flow and potential value uplift. For investors seeking leverage to copper and gold exploration in a tightening global supply environment, Cannindah Resources represents a compelling emerging story.
