Calidus Resources Drilling Highlights Resource Upgrade Potential

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) received first assays from a regional drilling program underway at the company’s Warrawoona gold project in the Pilbara of Western Australia.

Calidus described the results as “outstanding” with the exploration campaign part of its strategy to grow the 1.25 million-ounce JORC Resource at Warrawoona, where a Preliminary Feasibility Study is due for completion in July.

Results for an initial 25 holes of a larger 35-hole regional air-core program have been received.

Calidus explained the broad-spaced air-core drilling was undertaken to test several conceptual targets along the Klondyke and St George shears to the west of the 1.15 million-ounce existing resource and a gold-in-soil anomaly at Liberator to the south.

Shallow, high-grade gold intersected across the Klondyke Shear up to 5km west of the current Resource returned results including:

8 metres at 8.06 grams per tonne gold from 56m;

4m at 8.87g/t gold from 48m;

12m at 2.37g/t gold from 52m;

8m at 1.85g/t gold from 48m;

4m at 3.54g/t gold from 60m; and

4m at 2.35g/t gold from 44m.

“The results highlight the strong potential to grow the Warrawoona Resource,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This is the first investigatory drilling that Calidus has undertaken well away from the established 1.15 million-ounce Resource at Klondyke.

“We are very encouraged by the results from this first-pass regional drilling program, which has identified shallow mineralisation up to five kilometres west from the Klondyke resource on the same geological structure.

“These results highlight Warrawoona’s potential to host further near-surface gold mineralisation in close proximity to the proposed mine development.

“We are looking forward to what is shaping up as a transformational financial year ahead as we complete feasibility studies, grow resources and explore the regional potential of the project.”