THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported the start of diamond drilling at the high-grade Blue Spec deposit at the company’s Warrawoona gold project in Western Australia.
Calidus Resources said the drilling was part of its development strategy for Warrawoona with Blue Spec to be integral to the growth of the project’s forecast production rate, with the deposit being located within trucking distance of the project.
The company believes Blue Spec to hold potential to increase production to a peak of 139,000 ounces per annum compared with the 105,000 ounces per annum contained in the Warrawoona Feasibility Study released in March this year.
“This new drilling program is an important step in our growth strategy,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.
“Blue Spec has the potential to underpin a significant increase in the production rate at Warrawoona while enabling us to leverage off infrastructure which will already be in place.
“This will in turn further strengthen the overall economics and financial returns.
“Our strategy is to finalise the Blue Spec feasibility study so we can bring it into the production plan as soon as practical once operations at Warrawoona have been bedded down.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE