Calidus Resources (ASX:CAI) has recorded a swag of outstanding results from its resource conversion drilling programme at its Warrawoona gold project in WA’s Pilbara Region.
Shares in the company gained 4% to 2.8c on the news of shallow gold hits including 14m at 3.80 g/t gold from 1m, 23m at 2.30 g/t gold from 37m, 14m at 3.51 g/t gold from 2m, 12m at 2.68 g/t gold from 17m and 9m at 2.95 g/t gold from 21m.
Calidus Managing Director Dave Reeves said the latest results, which will be used to establish a Measured Resource, are important because they demonstrate that the mineralisation in the planned open pit at Klondyke is wide and continuous.
Mr Reeves said this highlights the technical and economic strength of the planned open pit and is consistent with Calidus’ strategy to de-risk the 1.25Moz Resource at Warrawoona, where the Definitive Feasibility Study is underway.
“These results show just how outstanding Warrawoona is, with high grade wide intersections in the area targeted for initial open pit mining.
“The outcropping nature of the orebody, high grades and substantial continuous widths of mineralisation will provide significant technical and financial advantages to the project.
“The drilling for the Measured Resource is now complete and the RC rig has moved on to drilling areas east of the current pit design as part of our plan to continue growing the mine life inventory.
“Drilling will then progress to Klondyke West, approximately 3km west of the current Resource, to commence more detailed exploration of this large gold system.”
The diamond rig has completed seven holes to date with logging of the core ongoing and initial holes dispatched for assay.
We look forward to releasing a steady stream of results over the remainder of this year as we continue to de-risk the Warrawoona Gold Project and expand mine life,” Mr Reeves said.
The company commenced a planned 88-hole resource infill drilling programme in August, within the boundaries of the proposed Klondyke open pit, with the objective of upgrading early production into the higher confidence, JORC compliant Measured Resource category.
The 88 shallow hole, 3,860m 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.
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.