Cannon Resources Limited announced that recent diamond drilling at the company's flagship Fisher East Nickel Project has intersected substantial zones of massive nickel sulphide at Sabre. Three new diamond holes MFED105, MFED117 and MFED118 were drilled up and down plunge of previously reported hole MFED103 (which returned 1.10m massive nickel sulphide at 7.63% Ni within a wider interval of 5.70m at 2.62% Ni). All 3 holes, together with hole MFED103 which was drilled earlier in this current drilling program, have intersected substantial massive and semi-massive nickel sulphides interpreted as a zone of high-grade mineralisation along the northern margin of the Sabre channel.

The mineralisation is contained in the same stratigraphic sequence as the greater Sabre mineral envelope, and to the extent currently drilled, is linear and predictable. Hole MFED117 intersected 3.7 metres of massive nickel sulphides within a larger mineralised zone of approximately 5 metres from 310 metres downhole. It was drilled some 190 metres below and down-plunge of hole MFED103 and represents the deepest extent of the channel yet drilled.

Hole MFED118 intersected 2.8 metres of massive nickel sulphides and approximately 2.5 metres of semi-massive sulphides from 133 metres downhole. This hole was drilled some 60 metres above and up-plunge of hole MFED103. The sulphide minerals remain intact with minimal oxidation in this hole, so we are likely still 10's of metres below the oxidation zone.

Hole MFED105 was drilled earlier in the program and intersected a thinner interval of massive nickel sulphide over 0.45 metres within a larger mineralised interval of 2.36 metres. Assay results have now been returned for this hole with the overall mineralised interval grading 2.36m at 2.3% Ni and including 0.45m at 5.9% Ni for the massive nickel sulphide interval. This hole was drilled approximately 90 metres below and down-plunge of hole MFED103.

Infill drilling will be undertaken to establish the lateral width and plunge extent of the high grade channel margin. This work is currently being planned. Holes MFED117 and MFED118 will be sampled immediately and sent to the laboratory as a priority job.

The current drilling program is still underway with 17 holes for approximately 5,500 metres completed to date from an initial planned 7,000 metres. Drilling has been conducted at Sabre (12 holes completed), Musket (3 holes completed) and Camelwood (2 holes completed). Assays have been returned for a portion of the Sabre holes but none of the Musket or Camelwood drilling.

The successful drilling at Sabre has resulted in a pivot to concentrate the remainder of the program on this prospect and the rig is currently infill drilling there. Once all assay results are received, it will be able to step straight into a resource update for Sabre. The company expects to commence and complete this work in August.