Cannindah Resources has an eye on the gold potential at its Mount Cannindah project after continued proof of high-grade gold mineralisation along with significant copper intercepts.

The company said it was continuing to focus on extensions of the Cannindah breccia mineral resource estimate (MRE) and would now incorporate an ongoing assessment of the gold potential adjacent to the MRE.

The high-grade gold zones could be defined geologically as a visibly different mineralisation and alteration style and could be geochemically isolated and domained due to the association of zinc, leda and bismuth.

“The recognition of the repeated development of high-grade gold results associated with a late-stage overprint on the copper-gold Cannindah breccia system requires further assessment to quantify the gold opportunity,” Cannindah Resources managing director Tom Pickett said.

“Early indications suggest a possible metal zonation with higher level gold anomalism developed in the south, which is encouraging.

“We have now observed these veins over a 600m strike and a vertical depth of greater than 800m.

“Future activity where gold is concerned will be aimed at defining the controls, continuity, and any additional areas of the high-grade gold zones.

“We are a copper focussed exploration company with the added advantage of high-grade gold and silver being present.

“Drillhole CAE027 currently being completed in the south is a key ingredient to this copper exploration targeting a high-order IP anomaly with both separate historic broad intervals of low-grade gold, and broad intervals of copper in associated stockwork veining.

“Hole 27 is 400m or more away from the resource area at Mount Cannindah. The possible presence of copper in this area with signs of chalcopyrite veinlets present would speak volumes as to the potential scale of the system we are dealing with at Mount Cannindah and we look forward to those results and outcomes as they come to hand.”

Significant gold intercepts in rdcent drilling include: CAE023 – 1m at 8.53g/t gold from 198m, 1m at 5.13g/t gold from 421m; CAE024 – 1m at 5.14g/t gold from 338m, 1m at 31.07g/t gold from 464m.

Below: Photo of a 1cm wide base metal carbonate quartz vein with visible gold from drillhole CAE024, which returned 1m at 31.07g/t gold from 464m downhole.