Cannindah Resources Ltd (ASX:CAE) is a leading ASX gainer after receiving sampling results of up to 34.6 g/t gold in trenches at the Piccadilly project in North Queensland.
Shares surged 34% to 6.7 cents, a new 12-month high.
Scout trenching in the new eastern zone also returned a result of 6.43 g/t gold.
Two trench areas
The company completed two trench areas to the east of the western slot.
One of these was 888 metres from the western slot area and the second was 590 metres further east.
The shallow central trench that returned the significant gold result is on the northern edge of an IP chargeability anomaly.
Cannindah is targeting this anomaly as a zone of high sulphide linked to the gold mineralisation encountered at surface.
The rock chip sample at the second trench in the eastern zone was dominated by altered sandstone with only minor evidence of veining.
Further work planned
Further investigation of the area to locate higher grade veining will be completed in coming weeks.
The sampling has shown that significant gold grades occur coincident with the northern edge of the IP anomaly.
These south dipping gold lodes are modelled as the surface expressions linked to IP-anomalous, potentially voluminous, gold-bearing sulphidic zones at depth.
The company now wants to test this strong working hypothesis with more exploration.
This work will provide further and more extensive sampling to allow more accurate drilling locations to be determined.