Calidus Resources Improves Warrawoona Confidence

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) announced first assay results from a recent 42-hole RC drilling program at the company’s Warrawoona gold project in the Pilbara region of Western Australia.

Calidus Resources stressed the importance of the results being from infill drilling, saying they confirm the continuity of the western part of the main Klondyke Resource model at Warrawoona.

Results for the eastern portion are pending and are expected to be released soon.

Of the 42-hole RC drilling program, 35 RC drill holes were completed over the current Klondyke Resource as part of the infill program while a further 7 RC drill holes were drilled into two regional targets that a truck-mounted air-core rig was unable to access.

Calidus has received an initial batch of results for 10 holes drilled into the western part of the Klondyke Resource, with results including:

13m at 1.58 grams per tonne gold from 28m;
12m at 1.52g/t gold from 66m;
5m at 2.85g/t gold from 2m;
7m at 1.9g/t gold from 86m; and
6m at 2.06g/t gold from 71m.

Calidus explained the infill drilling across the Klondyke deposit was undertaken to increase the reliability of the Resource and the mineralisation types inside the PFS open cut pit design as part of an ongoing strategy to de-risk the project.

“The RC drilling and trench campaigns are part of Calidus’ strategy to derisk the development of the Warrawoona project, where a Pre-Feasibility Study is due for completion next month,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“Upgrading drill density and trenching the upper portions of the Klondyke Resource will result in an improved level of confidence in lode geometry, continuity and predictability.

“Results will be used to refine the open-cut mine design and shallow early mine-feed material.”