Calidus Resources (ASX: CAI) reports strong grade continuity of gold mineralisation along-strike and down-dip of the planned Klondyke pit at its 1.25 million-ounce Warrawoona gold project in WA has been confirmed with the final batch of RC drilling results.
Calidus Managing Director Dave Reeves said that with all results now received for the upgrade to a Measured Resource, the company has ticked another box in the de-risking and advancement of the Warrawoona Gold Project.
We will now commence a review of the open pit resource model, including further optimisation. This will form the basis of the open pit resource upgrade targeting the March quarter of next year.”
“In addition, we have received results of drilling to the east of the proposed Klondyke pit, where we have intersected some high priority areas for follow up infill drilling.”
In August 2019, the company commenced a planned 88-hole 3,881m resource infill RC drilling programme, within the boundaries of the proposed Klondyke open pit.
The objective of this drilling programme is to upgrade early production from the Indicated Resource category into the Measured Resource category as part of the company’s de-risking strategy.
A total of 88 RC holes representing 3,860m have now been completed, with assays from 28 holes representing 1,166m reported to date.
The 3,860m shallow RC programme was designed to define the grade distribution to be exploited in the first twelve months of open pit mining and is concentrated on the near surface expression in the eastern portion of the Klondyke PFS proposed pit design.
Mr The PFS demonstrates that Warrawoona will be a robust project producing ~100,000ozpa with a Life-of-Mine All-in Sustaining Cost of ~A$1,159/oz.
Mr Reeves said the resource conversion RC drill programme intersected broad run-of-mine grade mineralisation and provides better geological resolution around the up-dip extent of mineralisation within the planned Klondyke Year One pit shell.