Calidus Resources Drilling Intercepts Underpin Resource Upgrade

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) received results for the remaining 32 RC and AC drillholes of a 42-hole RC program aimed at expanding the current Resources at the company’s Warrawoona gold project in Western Australia.

The total program comprised 35 RC drillholes within the current Klondyke/St George pit designs, as well as four initial shallow holes to test a section of the Highway Shear chargeability anomaly.

Eleven RC holes were drilled into the St George PFS pit designs to assist in converting these resources to an Indicated category.

Assays from this drilling included:

13 metres at 11.1 grams per tonne gold from 30m, including 1m at 107.16g/t gold from 36m;

13m at 5.58g/t gold from 46m; and

12m at 1.73g/t gold from 23m.

Drilling on the eastern side of the Klondyke PFS pit design was planned to increase resources in an area that had limited drill density and as a result allow the PFS pit design to be driven deeper.

Calidus has been encouraged by the intercepts received that appear to have achieved their aim.

Highlights from this part of the resource included:

10m at 6.81g/t gold from 47m, including 1m at 50.77g/t gold from 49m;

5m at 3.16g/t gold from 126m;

22m at 2.13g/t gold from 19m; and

15m at 1.71g/t gold from 41m.

“With the completed PFS showing a robust six-year initial mine life, we are now focussing growing the mine life and continuing to de-risk this quality WA gold development story,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This drilling was planned to build confidence in the resource categories and potentially add further open pit reserves by increasing pit depth in areas of low drill density.

“The high-grade tenor of the results confirms that areas of the pit will contain bonanza grades.

“With one rig on site and a second rig to be mobilised for the remainder of this calendar year, there will be strong newsflow as we continue to add mine life and increase confidence in the resource and reserves at Klondyke.”