Updated – midday March 18

There’s been a big reaction to Cannindah Resources’ latest resource review.

The stock opened on the ASX at $0.035 on Wednesday and had bounced 181 per cent on the ASX by midday. It had hit more than $0.09 30 minutes after the opening bell. 

The increased investor interest in the company saw it raise $1,250,000 through the issue of 20,833,334 shares in a placement that received cornerstone support from Fresh Equities, Carnaby revealed today.

It follows the company’s announcement that it had recently conducted a review of the Mount Cannindah project in Central Queensland, including its resource targets. 

Re-examination of the Mount Cannindah project’s current resources and their inventory of previous estimated contained metal amounted to about 90,000 tonnes of copper, 60,000 ounces of gold and over 2.5 million ounces of silver. 

The company advised that no economic or mining parameters had been applied to these indicative amounts. 

Standing on the shoulders of giants

Cannindah is building on exploration work by major companies including Mount Isa Mines and Newcrest.

The company said current prices including gold, copper, and silver which were all major commodities at the Mount Cannindah project are significantly higher than when the previous explorers were drilling. 

The review identifies the potential contained within existing mining leases at Mt Cannindah along with areas that have been under-explored. 

The company said Cannindah now had the opportunity to take advantage of all this previous high-quality work to develop these 100 per cent owned assets, at a time of high demand for the metals contained in them. 

It said the recent review highlights the significant indicative in-ground value already identified and potential areas where the search for additional resources may be rewarded by further drilling. 

The stock closed at $0.068 Wednesday, a 119 percent increase and was yesterday’s best performer on the ASX – trading $22,792,000 and more than 268,000,000 shares.

Carnaby said funds received from yesterday’s capital raising would be used to commence the exploration programs for Mount Cannindah outlined in the announcement of March 17, to further the exploration activities at the Piccadilly project in the Charters Towers region, and to meet working capital needs and the costs of the issue.