Calidus Resources Strikes JV with Novo Resources on WA Tenements

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) announced a deal to form a Joint Venture with TSX-listed Novo Resources.

Under the deal Calidus will have the right to acquire a 70 per cent interest in Exploration Licences 45/3381, 45/4194, 45/4622, 45/4666 and Prospecting Licences 45/2661, 45/2662, 45/2781 and all related technical information held by Novo.

The tenements surround Calidus’ Warrawoona gold project and include direct extensions to the Klondyke Shear in the East Pilbara region of Western Australia.

The deal will enable Calidus to expand its Pilbara footprint with associated anomalies including a five-kilometre extension of the Klondyke trend to the south east of Calidus’ current Klondyke East tenement holding where limited drilling by Conzinc Riotinto in 1996 returned encouraging gold intercepts including:

10 metres at 1.7 grams per tonne gold from 56m;

2m at 5.58g/t gold from 31m; and

4m at 4.35g/t gold from 141m.

Calidus indicated a parallel 5km long soil‐rock gold anomaly, known as Horrigans, located 800m to the north of Klondyke East and located on the Novo tenements has never been drill tested.

The company said it had highlighted numerous other exploration prospects following an initial evaluation of the data, ranging from elevated soil gold-arsenic values coincident with inferred structures to isolated rock values up to 66g/t gold.

“With the execution of this agreement we now control the vast majority of this highly prospective greenstone belt,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“With drilled mineralisation extending four kilometres directly to the east of the current resource, highly prospective drill intercepts in satellite areas and substantial undrilled soil anomalies, the area provides significant upside to the Warrawoona project.

“Such a transaction benefits both parties by providing critical mass in one area thereby enhancing the potential for development of a standalone operation in the area.”