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Cannindah Resources shares surge on high-grade gold at Piccadilly

Received rock chip samples grading up to 27 g/t gold from Piccadilly.
Negotiating a mine gate deal to sell the ore

Cannindah Resources’ (ASX:CAE) shares were trading 307% higher intra-day on Tuesday, after receiving rock chip samples grading up to 27 g/t gold from the Piccadilly Gold Mine in Queensland.

The Piccadilly Gold Mine has been mined historically by mining the rich quartz veining located within the mining lease.

Cannindah is presently evaluating potentially economic target areas within this quartz vein system.

The quartz vein system is of varying width from 1 centimetre up to 15 centimetres at the surface of the exposed trench area.

The company intends to complete further test work on the area prior to selectively mining this high-grade material in the near future.

As a pathway to more immediate cash flow, Cannindah is attempting to negotiate a mine gate deal to sell the ore extracted from Piccadilly with interested parties.

Importantly, exposing a high-grade zone within such a short period at minimal expense is highly encouraging for Cannindah.

Cannindah has entered a deal with Piccadilly Gold Mine Holdings Ltd to explore and mine the Piccadilly Gold Mine by paying a 7% royalty.

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