THE DRILL SERGEANT: Calidus Resources (ASX: CAI) released results from the first reconnaissance drilling program completed at the company’s recently acquired Otways project in the Pilbara region of Western Australia.
Calidus Resources recently entered into a Heads of Agreement with Rugby Mining to earn up to 70 per cent interest in the project located north-east of Nullagine.
The company received assays for five RC holes and one diamond hole at the Otways prospect, returning broad zones of copper mineralisation and confirming historic intercepts.
Best intercepts include:
43 metres at 0.7 per cent copper, including 10m at 1.64 per cent copper from 0-43m;
18m at 0.33 per cent copper from 18-36m;
13m at 0.35 per cent copper from 60-73m;
53m at 0.17 per cent copper from 0-53m;
11m at 0.47 per cent copper from 92-103m; and
11.25m at 0.42 per cent copper from 71-82.25m.
Calidus explained the drilling campaign was part of the company’s two-pronged strategy of creating value through exploration at the same time as developing its Warrawoona gold project, also in the Pilbara.
“The reconnaissance drilling at Otways has defined a thick blanket of copper mineralisation from surface which is increasing in grade to the south and west,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.
“This coincides with historical work which outlined a soil geochemical anomaly extending another 1.5 kilometres to the south-west.
“Next year we plan to step out drilling to the west and south to test whether this grade improves under the soil anomaly.
“We can then review results to ascertain how best to unlock value for Calidus shareholders from this deposit whilst we commence exploration on the largely untested broader Otways tenements.
“This is in line with our twin strategy of developing the 1.5 million ounces Warrawoona gold project next year whilst continuing to explore a number of organic growth opportunities to generate value from our broader portfolio.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE