Calidus Resources Grows Warrawoona Gold Resource by 75%

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) announced a substantial increase to its Mineral Resource with a high conversion to Indicated Mineral Resources at the company’s 100 per cent-owned Warrawoona gold project, located in the Pilbara of Western Australia.

Calidus Resources has taken the total JORC 2012-compliant Mineral Resource (Measured, Indicated and Inferred) for the Warrawoona project to21.2 million tonnes at 1.83 grams per tonne gold for 1.25 million ounces.

The total includes a 75 per cent increase (1.25 million ounces) in total contained ounces from the previously announced December 2017 Mineral Resource.

The Mineral Resource contains a high‐grade component estimated to contain 14.6 million tonnes at 2.37g/t gold for 1.1 million ounces.

The company said the Resource remains open both at depth and along strike, and that it considers potential exists for further resource growth.

The updated Resource will be incorporated into the Pre‐Feasibility Study, which is progressing and due for completion later this year.

The company indicated the major contributor to the Resource increase being the Klondyke Main Shear, which encompasses the Klondyke East prospect as well as the St George Shear prospect lying 150m immediately to the north of the Klondyke Main Shear.

Infill and extensional drilling increased overall shallow Resources by 42 per cent to a total of 17.8 million tonnes at 1.62g/t gold for 930,000 ounces (at a 0.5g/t Au cut‐off).

Calidus explained that at a 0.8g/t Au cut‐off, the shallow portion of the Klondyke resource is potentially amenable to open‐pit mining comprising 800,000 ounces at a grade of 2.19g/t gold.

The company said it has developed the he updated Resource to demonstrate proof‐of‐concept of the potential for underground development of Klondyke Deeps with an initial resource of 2.2 million tonnes at 3.13g/t gold for 220,000 ounces (at a 2g/t Au cut‐off) of all mineralised material below the 100mRL (200m below surface).

“To effectively triple our high‐grade resource base to 1.25 million ounces within 18 months of listing highlights the unique attributes of the major gold system at Warrawoona,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“Given the shallow and high‐grade nature of the resource and its prime location in proximity to high‐quality infrastructure and a number of operating mines, Warrawoona has rapidly emerged as a highly‐valuable asset which we believe will clearly justify the development of a standalone mining and processing operation.

“The updated resource will underpin the pre‐feasibility study that is due for completion in Q3‐CY2019 and the subsequent bankable study as we continue our strategy of becoming a low risk, near term gold producer.

“There is obvious opportunity to grow the Mineral Resource along strike and at depth, plus we will evaluate and test a number of regional prospects in 2019, which have excellent potential to generate shallow ounces that could be included within our overall Mineral Resource inventory.”