Calidus Resources Hits More Gold in Planned Klondyke Pit

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported a further batch of high-grade RC drilling results from the company’s Warrawoona gold project in the Pilbara of Western Australia.

Calidus Resources said the results provided a continued demonstration of the strong strike and grade continuity of gold mineralisation within the planned Klondyke pit at the 1.25 million-ounce project.

The company explained the RC drilling inside the planned Klondyke pit has been designed to upgrade the current Resource from the Indicated to Measured status and will form part of the current Definitive Feasibility Study underway.

The drilling returned more intersections, including:

12 metres at 5.58 grams per tonne gold from 12m;

15m at 4.33g/t gold from 6m;

36m at 1.53g/t gold from 12m;

20m at 1.96g/t gold from 20m;

21m at 1.63g/t gold from 9m;

6m at 5.12g/t gold from surface; and

6m at 5.11 g/t gold from 18m.

“Drilling continues to intersect wide, high-grade mineralisation in the planned open pit,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“These results are frequently above the current average pit grade of 1.4 grams per tonne, they are shallow and they demonstrate excellent continuity of mineralisation.

“This means the economic and technical outlook for Warrawoona continues to strengthen, with the potential returns growing and the risks falling.

“In addition, the initial diamond core drilling to test the down-dip potential of the Klondyke mineralisation looks promising.

“While assays are pending, the geology intersected and visible gold observed by geologists supports our view that it is a good opportunity to grow the Resources and Reserves below the Klondyke pit.”