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Calidus Resources Drilling Intercepts Underpin Resource Upgrade

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) received results for the remaining 32 RC and AC drillholes of a 42-hole RC program aimed at expanding the current Resources at the company’s Warrawoona gold project in Western Australia.

The total program comprised 35 RC drillholes within the current Klondyke/St George pit designs, as well as four initial shallow holes to test a section of the Highway Shear chargeability anomaly.

Eleven RC holes were drilled into the St George PFS pit designs to assist in converting these resources to an Indicated category.

Assays from this drilling included:

19SGRC078
13 metres at 11.1 grams per tonne gold from 30m, including 1m at 107.16g/t gold from 36m;

19SGRC081
13m at 5.58g/t gold from 46m; and

19SGRC075
12m at 1.73g/t gold from 23m.

Drilling on the eastern side of the Klondyke PFS pit design was planned to increase resources in an area that had limited drill density and as a result allow the PFS pit design to be driven deeper.

Calidus has been encouraged by the intercepts received that appear to have achieved their aim.

Highlights from this part of the resource included:

19KLRC192
10m at 6.81g/t gold from 47m, including 1m at 50.77g/t gold from 49m;

19KLRC193
5m at 3.16g/t gold from 126m;

19KLRC201
22m at 2.13g/t gold from 19m; and

19KLRC195
15m at 1.71g/t gold from 41m.

“With the completed PFS showing a robust six-year initial mine life, we are now focussing growing the mine life and continuing to de-risk this quality WA gold development story,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This drilling was planned to build confidence in the resource categories and potentially add further open pit reserves by increasing pit depth in areas of low drill density.

“The high-grade tenor of the results confirms that areas of the pit will contain bonanza grades.

“With one rig on site and a second rig to be mobilised for the remainder of this calendar year, there will be strong newsflow as we continue to add mine life and increase confidence in the resource and reserves at Klondyke.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

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.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Calidus Resources Drilling Highlights Resource Upgrade Potential

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) received first assays from a regional drilling program underway at the company’s Warrawoona gold project in the Pilbara of Western Australia.

Calidus described the results as “outstanding” with the exploration campaign part of its strategy to grow the 1.25 million-ounce JORC Resource at Warrawoona, where a Preliminary Feasibility Study is due for completion in July.

Results for an initial 25 holes of a larger 35-hole regional air-core program have been received.

Calidus explained the broad-spaced air-core drilling was undertaken to test several conceptual targets along the Klondyke and St George shears to the west of the 1.15 million-ounce existing resource and a gold-in-soil anomaly at Liberator to the south.

Shallow, high-grade gold intersected across the Klondyke Shear up to 5km west of the current Resource returned results including:

19TRAC008
8 metres at 8.06 grams per tonne gold from 56m;

19WWWB004
4m at 8.87g/t gold from 48m;

19KLAC009
12m at 2.37g/t gold from 52m;

19TRAC009
8m at 1.85g/t gold from 48m;

19TRAC006
4m at 3.54g/t gold from 60m; and

19SGAC003
4m at 2.35g/t gold from 44m.

“The results highlight the strong potential to grow the Warrawoona Resource,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This is the first investigatory drilling that Calidus has undertaken well away from the established 1.15 million-ounce Resource at Klondyke.

“We are very encouraged by the results from this first-pass regional drilling program, which has identified shallow mineralisation up to five kilometres west from the Klondyke resource on the same geological structure.

“These results highlight Warrawoona’s potential to host further near-surface gold mineralisation in close proximity to the proposed mine development.

“We are looking forward to what is shaping up as a transformational financial year ahead as we complete feasibility studies, grow resources and explore the regional potential of the project.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Calidus Resources Enhances Warrawoona Exploration Potential

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) announced results from a recent Induced Polarisation (IP) survey carried out at the company’s Warrawoona gold project in the Pilbara of Western Australia.

Calidus Resources said the results highlighted the potential for further growth in the 1.25-million-ounce Resource at Warrawoona, which will further underpin the project’s production profile, mine life and economics.

The IP reconnaissance program highlighted a parallel shear 400 metres south of Klondyke buried at a depth of approximately 60 to 80 metres with similar chargeability signatures to the 1.15 million-ounce Klondyke deposit.

The results of the recent IP program indicated two styles of IP anomalies have now been identified; a Klondyke style and a St George style.

A clear Klondyke style anomaly has been identified over the Highway Shear area, which has never been drill tested.

Given the similarity to the Klondyke anomaly, Calidus considers the Highway Shear anomaly a high-priority target.

There has been no exploration to date along this trend and Calidus geologists are currently field mapping this structure in detail.

Calidus said this reinforced its view that the deposit represents a much larger system than current drilling suggests.

“The IP traverses show a clear correlation between gold mineralisation and IP anomalism and we are excited to further examine the strong Klondyke‐style chargeability anomaly identified over the Highway Shear which has never been drilled,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“As the Highway Shear is located immediately adjacent to the planned two-kilometre‐long open pit and underground being contemplated in the PFS, we will undertake drilling here in Q3 as a priority.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Calidus Resources has Warrawoona PFS on Track for July Finish

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) declared the pre-feasibility study currently underway at the company’s Warrawoona gold project in the Pilbara region of Western Australia is progressing well and is on track for completion in July.

The company reported that all the information it has gathered so far has demonstrated the Warrawoona project, which has a total Mineral Resource (Indicated and Inferred) of 1.25 million contained ounces, would have a simple layout and processing route.

“The pre-feasibility study is now well advanced and it already shows that Warrawoona is shaping up as a very simple development scenario,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“The completed mine design on the outcropping Klondyke shear shows a single, two-kilometre-long continuous pit.

“The process flow sheet that has been locked in results in a very simple primary crush, SAG mill comminution circuit, followed by a gravity gold and conventional carbon-in-leach (CIL) recovery plant.

“This conventional layout will also have the benefit of a modest capital and operating cost to build and operate.

“The tailings are proposed to be thickened and disposed in a valley fill tails dam which will result in a much smaller tails dam embankment being required compared to conventional paddock dams, thereby reducing capital for this component of the study.

“Sustaining capital is also negated as no upstream lifts of walls are required as in the case of paddock dams.

“Exploration drilling for water has now been completed, with good sources of high-quality water identified close to the processing plant.

“The drilling rig has now moved back to regional exploration and I look forward to updating the market on this as results become available.”

The Resources Roadhouse spoke with Calidus Resources managing director Dave Reeves at the recent RIU 2019 Sydney Resources Roundup – WATCH THE INTERVIEW HERE

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Calidus to Raise $2.16M Through Strategic Placement

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) announced a strategic placement of 80 million shares at an issue price of 2.7 cents a share, for a total of $2.16 million, to Alkane Resources (ASX: ALK).

Alkane Resources is a New South Wales gold producer with a market capitalisation of around $120 million.

Calidus declared the proceeds of the placement, combined with its existing bank balance will ensure the company is cashed up to complete the pre-feasibility study (PFS) currently underway on its Warrawoona gold project in the Pilbara and conduct further drilling of regional targets and resource infill and extensional areas.

The new shares are priced at a 13 per cent premium to Calidus’ last closing price of 2.4 cents before the deal was finalised and will be allotted in one tranche pursuant to the company’s existing capacity under ASX Listing Rules.

“This strategic placement to Alkane means that Calidus can extend the existing drilling program to target new and additional regional and near-resource areas,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This drilling is being done in parallel with the PFS to help ensure that we not only grow the gold inventory, but we also achieve our target of showing the market the strong financial returns we believe will be associated with the Warrawoona gold project.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

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.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Calidus Encounters Further High-Grade Gold at Warrawoona

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) released the latest high-grade drilling results achieved from the St George Shear and Klondyke East prospects at the company’s Warrawoona gold project in Western Australia.

Calidus Resources said the reustlts had confirmed extensions to the current Resource area at the Warrawoona project.

The company explained the drilling is part of a larger resource infill and extension program it has going to expand the current 712,000 ounce Warrawoona resource leading to the commencement of a pre-feasibility study in 2019.

Infill drilling for open-pit resources at the new high-grade gold zone St George, 150m North of the Klondyke Main resource, returned intercepts including:

18SGRC031
6 metres at 7.61 grams per tonne gold, including 1m at 40.64g/t gold from 16m;

18SGRC032
8m at 5.64g/t gold, including 1m at 11.03g/t gold, 1m at 13.05g/t gold and 1m at 10.95 g/t gold from 44m;

18SGRC047
14m at 1.77g/t gold from 35m; and

18SGRC050
2m at 10.23g/t gold, including 1m at 18.91g/t gold from 91m.

Klondyke East in-fill drilling returned the following:

18KLRC152
2m at 20.84g/t gold, including 1m at 40.51g/t gold from 88m;

18KLRC148
6m at 3.82g/t gold from 93m;

18KLRC172
15m at 0.97g/t gold from 97m;

18KLRC157
2m at 7.29g/t gold, including 1m at 12.75g/t gold from 66m; and

18KLRC158
1m at 10.79g/t gold from 2m.

“The ongoing multi-target drilling programs at the Warrawoona gold project continue to be very successful, aiming to build on the landmark 712,000 ounce resource we delivered in December 2017 and clearly showing that the project has considerable upside,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“The high-grade tenor of the St George Shear intercepts is very encouraging especially considering its location being only 150 metres north of the Klondyke deposit.

“With still 60 per cent of this area to report and the tenor of grade increasing to the west, I look forward to reporting these further results and the results of an initial diamond drill program that is targeting resources beneath the potential open pit at Klondyke.

“This drilling is now complete with drill rigs now moving to complete geotechnical drilling and water bore drilling for the upcoming pre-feasibility study.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Calidus Resources Sells Off Conglomerate Gold Rights

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) has entered into a binding letter of intent (LoI) to sell off the Conglomerate Gold Rights over the company’s portfolio of eight exploration licenses.

Calidus Resources will receive seven million shares in TSXV-listed Pacton Gold Inc, a bundle that is currently valued at C$3.5 million.

The actual tenements will be retained by Calidus, as the agreement is over right to explore for and mine conglomerate gold, with all shear hosted/basement gold to be retained by Calidus.

The portfolio in question consists six granted exploration licenses and two exploration licenses currently under application with mapped conglomerates.

Pacton will be liable for rehabilitation and environmental obligations and will need to spend a minimum of C$50,000 in aggregate on all tenements during each 12-month period from commencement of the Gold Rights Agreement.

“This is a pleasing outcome as sale of the Conglomerate gold rights provide Calidus with an opportunity to realise value over non-core areas of the company’s portfolio,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This value can in time be applied to assisting in funding our core focus which is developing the Warrawoona gold project.”

Calidus explained that the Gold Rights relate to material that overlies the basement rocks and that is formed of transported material.

Specifically, this means the Fortescue Group conglomerates that overlie the Warrawoona Greenstone Belt.

The relevant tenements covered by the LoI do not include areas covered by the company’s current resource or planned drilling program.

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Calidus Resources Identifies 1,000 metre strike Mineralisation from Surface at St George Shear

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) received results from drilling underway at the company’s Warrawoona gold project, located in the Pilbara of Western Australia.

Calidus Resources indicated the resource infill and extension program is being carried out with an aim to expand the current resource to underpin a pre‐feasibility study in 2019.

As part of this program, Calidus is testing high priority targets including the St George Shear that it considers to have potential to increase the Warrawoona resource.

According to the company. wide spaced RC drilling of the St George Shear prospect approximately 150 metres from the current 654,000 ounce Klondyke resource has demonstrated the potential to rapidly add ounces to its resource base.

Latest results include:

18SGRC008
8 metres at 3.9 grams per tonne gold from 0m, including 1m at 11.3g/t gold from 0m;

18SGRC012
11m at 1.53g/t gold from 28m; and

18SGRC013
6m at 2.27g/t gold from 88m;

“Our exploration program continues to deliver strong results and highlights the significant discovery potential proximal to the existing Klondyke resource,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“The shallow intersections highlight the near surface gold potential across the St George Shear structure and it’s potential to enhance the economics of any potential future development at Klondyke.

“This initial set of results from our first line of broad‐spaced holes across the St George Shear validates the geological targeting model and further boosts our confidence in the potential of the regional shear structures to deliver results.

“We will undertake further drilling within this identified 1,000 metre zone with an aim to bring St George into our global resource.

“We have just commenced RC resource upgrade drilling at the Copenhagen deposit as well as a diamond drill program testing an 800-metre-long continuous high‐grade structure lying at the base of the current Klondyke pit design.

“With three drill rigs now in operation we look forward to reporting results on a regular basis.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au