Cannindah cashed up for Piccadilly exploration
The company this week reported that rock chip sampling had returned some high-grade gold results that highlighted the potential of the under-explored eastern section of the Piccadilly mining lease.
Geological prospecting had focused on an abrupt bend in the main historical workings as a potential niche for gold mineralisation, it said.
The company plans trench sampling to obtain a clearer picture of the orientation and grade of the lodes.
Funds received from the $ 1 million capital raising will be used to advance drilling and other exploration activities at the Piccadilly project, meet working capital needs and the costs of the issue.
“Cannindah Resources has been working towards realising the potential of its high-quality exploration assets, Piccadilly and Mount Cannindah,” chairman Tom Pickett said.
“This capital raising, following on from the announcement late last year of the proposal to convert the company’s existing loan from its largest shareholder to equity, places the company in a strong financial position to move forward to achieving this outcome.”
Cannindah Resourcesrecently applied for new exploration ground attached to the Piccadilly project area.
Previous drilling on the tenement, named Percy Marlow, intersected significant high-grade gold mineralisation. It would join the Piccadilly tenements to form a coherent tenement area covering about 440sq km.