Shares in Cannon Resources (ASX: CNR) closed up 50% on Wednesday following news that first results from diamond drilling at the Musket prospect within its flagship Fisher East Nickel Project have returned ‘significant’ zones of high-grade nickel sulphides.
Assays have been returned for three of the program’s four holes, with standout hits including:
- Hole MFED083: 14.94m @ 1.90% Ni from 366.15m
- Hole MFED084: 4.94m @ 1.79% Ni from 559.77m
- Hole MFED088: 5.81m @ 2.29% Ni from 584.35m
The company says that drilling intercepted ‘substantial’ thicknesses of mineralisation on the northern margin of the prospect’s main channel, extending the mineralisation to approximately 100 metres below, and down-plunge of the existing Musket resource. Importantly, Musket remains open down plunge and laterally to the north.
A DHEM survey on MFED089 returned off-hole anomalies below the drillhole, with the company stating that the DHEM plate models indicate ‘significant’ exploration upside along the northern margin of the Musket mineralisation, which will be targeted during future drilling.
“This current round of drilling confirms that significant resource growth can be expected with well targeted future drilling”
Speaking on the results, Cannon Resources CEO Steve Lynn said: “The diamond drilling results and DHEM modelling are an excellent and significant development at Musket and highlight our ability to predict mineralisation trends and grow the orebody. The assay results show that the mineralisation continues down-plunge at better than the average grade of the existing resource.
The system is totally unconstrained at depth and laterally within the northern mineralisation trend. This current round of drilling confirms that significant resource growth can be expected with well targeted future drilling.”
Cannon had commenced a 4,000 metre diamond drilling campaign at the Camelwood, Musket, and Sabre prospects in August 2021, which was subsequently extended to 6,300 metres. Assays remain pending for Camelwood and Sabre.
The company reports that further DHEM surveys are currently targeting existing holes from this program, which are expected to be completed over the coming weeks. Further work is expected to include RC and diamond drilling for infill and extensional purposes at depth and along strike.
Images: Cannon Resources Limited