Cannon Resources Limited announced that a recently completed deep diamond hole has more than doubled the vertical extent of nickel mineralisation at the Sabre prospect. Hole MFED122 has intersected nickel sulphide mineralisation at 650 metres vertical depth from surface and beneath and down-plunge of the Sabre resource. MFED122 intersected 6.4m @ 1.3% Ni from 735.87m which included an internal zone of 5.1m @ 1.5% Ni from 737.21m.

A further intercept of 0.51m @ 5.3% Ni from 745.17 was also recorded some 2.9m below the initial mineralised intercept. Hole MFED122 was drilled to test the concept that nickel mineralisation within the Sabre channel continues well below the extent of the current resource. Cannon geologists were confident that the mineralisation and channel plunge were interpreted correctly and given the relatively shallow depth extent of the current resource drilling, a large step-out for a deep hole was considered.

Therefore, MFED122 was drilled at twice the vertical depth and a massive 520 metres down the plunge from the deepest and closest mineralised holes. Hole MFED122 intersected the komatiite contact within 3 metres of the predicted depth, demonstrating the predictable nature and solid foundation of our geological model. Strong komatiite hosted disseminated sulphide mineralisation was encountered on the basal contact.

Assay data show that nickel mineralisation is in line with the average grade of the existing resource at Sabre and highlights the potential for further resource expansion down plunge. Additionally, a 0.5 metre zone of massive nickel sulphides grading at 5.3% Ni was intersected 2.9 metres stratigraphically above the basal disseminated mineralisation. This zone was interpreted to be structurally emplaced and remobilised.

Again, this highlights the potential for structurally emplaced high-grade zones nearby that are similar in style to that along the northern margin of Sabre (recent holes MFED103, MFED105, MFED117 and MFED118). This style of target will be a priority for future drilling campaigns at Sabre. All assay data has now been returned for existing 2022 Sabre drilling.

Currently a resource update is underway on the above 300 metre zone. This will incorporate those holes outside of the current resource, for example the high-grade massive nickel sulphide intersected in recently drilled holes MFED103, MFED105, MFED117 and MFED118. The resource update is expected to be completed in the current September quarter of 2022.