Calidus Resources Confirms Robustness of Warrawoona Pit

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) announced further results from within the planned open pit at the company’s Warrawoona gold project in the Pilbara region of Western Australia.

Calidus Resources said the latest results, which will be used to establish a Measured Resource, continue to demonstrate that the mineralisation in the planned Klondyke open pit is outcropping, wide and continuous.

Recent intersections include:

35 metres at 2.84 grams per tonne gold from surface;

23m at 2.55g/t gold from 15m;

23m at 2.06g/t gold from 1m;

20m at 1.97g/t gold from 25m;

23m at 1.32g/t gold from 13m;

25m at 1.08g/t gold from surface;

23m at 1.17g/t gold from 34m;

13m at 2.05g/t gold from 15m;

15m at 1.06g/t gold from 2m;

13m at 1.13g/t gold from 12m;

12m at 1.16g/t gold from surface;

9m at 1.36g/t gold from 21m to EOH; and

8m at 1.52g/t gold from surface.

“These results continue to demonstrate that the mineralisation at Klondyke is wide, continuous and outcrops at surface,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This further boosts the economic outlook for the planned open pit while derisking the operation in the process.

“In simple terms, it means we would be mining ore from day one with no pre-strip required.

“Drilling continues at Klondyke with two rigs; while an RC rig is currently drilling greenfields targets three kilometres west of Klondyke, the diamond rig continues to infill the underground resource.

“All of this drilling is aimed at extending mine life, which would in turn enhance the previously-quoted PFS metrics.”

Calidus commenced the 88-hole resource infill drilling program in August 2019 within the boundaries of the proposed Klondyke open pit, with the objective of upgrading early production into the higher confidence, JORC compliant Measured Resource category.

The shallow RC program was designed to define the grade distribution the company anticipates to be exploited in the first twelve months of open pit mining and is concentrated on the near surface expression in the eastern portion of the Klondyke PFS proposed pit design.

The PFS has demonstrated that Warrawoona will be a robust project producing around 100,000 ounces per annum with a Life-of-Mine All-in Sustaining Cost of approximately $1,159 per ounce.

Calidus will incorporate the results of the Klondyke resource infill program into an updated resource model where the company expects to upgrade a portion of production within the first year of the open pit into the higher confidence JORC compliant Measured Resource category.

The company has recently deployed a diamond core rig to accelerate conversion of Inferred resources to Indicated as part of the development work around a potential underground operation.