Calidus Resources Drilling Underpins Open Pit Resource Upgrade

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported the final batch of RC drilling results from inside the planned Klondyke pit at the company’s 1.25 million-ounce Warrawoona gold project in Western Australia.

Calidus Resources claimed the latest results have provided additional support of the strong grade continuity of gold mineralisation along-strike and down-dip of the planned Klondyke pit.

RC drilling inside the planned Klondyke pit has been designed to upgrade the Resource from Indicated to Measured status and will form part of the Definitive Feasibility Study (DFS) that is currently underway.

The recent activity returned more encouraging intersections, including:

15 metres at 3.7 grams per tonne gold from 30m;

12m at 3.93g/t gold from 19m;

11m at 3.41g/t gold from surface; and

12m at 3.05g/t gold from 43m.

“With all results now received for the upgrade to a Measured Resource, we have ticked another box in the de-risking and advancement of the Warrawoona gold project,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“We will now commence a review of the open pit resource model, including further optimisation.

“This will form the basis of the open pit resource upgrade targeting the March quarter of next year.

“In addition, we have received results of drilling to the east of the proposed Klondyke pit, where we have intersected some high priority areas for follow up infill drilling.”

Calidus completed an infill RC drill program to the east of the planned Klondyke pit that also returned healthy intersections, including:

14m at 3.38 grams per tonne gold from 67m;

5m at 6.69g/t gold from 62m; and

13m at 2.18g/t gold from 31m.

Calidus has now completed all drilling it had programmed for this year’s field season with a diamond rig having completed metallurgical and geotechnical holes for the DFS.

A geophysical drillhole density logging program is underway and due for completion early December.

The company has the acquisition of detailed airborne magnetic, radiometric and digital terrain data across the tenement package is proposed for completion by mid-December.

It will now commence updating of the open pit geological model now drilling is completed.