Cannindah’s turning headsOne such junior is Cannindah Resources...

Cannindah’s turning heads

One such junior is Cannindah Resources (ASX:CAE) whose Mt Cannindah asset not only boasts a realistic chance of short to mid-term production but is gaining the attention of one of the world’s biggest copper producers – Chilean state-owned company, Codelco.

The project’s existing measured, indicated and inferred resource was recently upgraded from 5.5Mt to 14.5Mt at 1.09% copper equivalent, constrained by an open pit design to a depth of 350m.

Speaking with *, CAE managing director Tom Pickett said there’s still a bit to chase to expand resources but the project presents a robust starting point for a larger company, with significant exploration potential in prospects that surround the project area.

“These other prospects we’ve identified are quite large, much larger than the resource area itself and we believe they also hold significant potential for copper and gold mineralisation,” he said.

“Larger companies around the globe are hunting for the larger porphyry systems which are lower grade but more bulk tonnage propositions of around 0.4% to 0.5% copper rather than the higher grade breccias that we’re seeing close to surface.

“They want to have a look at the bulk tonnage proposition that is likely to provide decades of mine life, so we have done a bit of work in relation to the possibility that these higher grade breccia systems are being fed by a porphyry system, which will be an addition to the attractiveness of what is already a large resource.”

In terms of positioning, CAE’s Cannindah project is somewhat unique given its within a mining lease only 100km from the port of Gladstone. Pickett says the need to maintain a strong copper mining industry will see the Queensland Government support miners who can deliver employment opportunities.

“The government recognises that the sector provides significant employment opportunities and as exploration spending is increased, I think there’ll be further support to reduce the amount of red tape that would otherwise be there to bring projects to fruition faster,” he said.

Codelco first expressed interest in Cannindah in June 2023 with a view to enter into a potential transaction, and last month visited the project to conduct low impact ground-based exploration activity and to review drill core in Townsville.

Discussions are ongoing and if Codelco walks away, Cannindah will receive the data from Codelco’s work at no cost.

And Codelco isn’t the only international player keen on Queensland’s copper sector. US$6bn capped South African gold producer Harmony Gold notably stepped into the region via its acquisition of the Eva copper project north of Mt Isa in a US$230 million deal with Copper Mountain Mining in 2022.