Calidus reports more shallow, high-grade gold at Klondyke

Calidus Resources (ASX: CAI) has reported another batch of high-grade RC drilling results from Resource upgrade drilling at its Warrawoona gold project in WA.

The company reported that the economic and technical strength of the Warrawoona gold project in WA’s Pilbara has been highlighted by these new batch of strong results.

CAI said that the RC drilling inside the planned Klondyke pit, which is designed to upgrade the Resource from Indicated to Measured status and will form part of the Definitive Feasibility Study underway, has returned more significant intersections.

Highlights include 12m @ 5.58 g/t Au from 12m; 15m @ 4.33 g/t Au from 6m; 36m @ 1.53 g/t Au from 12m; 20m @ 1.96 g/t Au from 20m; and 6m @ 2.29 g/t Au from 45m; and 5m @ 2.72 g/t Au from 1m.

The company said that this RC drilling programme is now finished and assays for the remaining 28 RC holes are pending.

CAI reported that the diamond core drilling below the proposed pit to test the down-dip potential of Klondyke has intersected visible gold.

Warrawoona gold project

The Warrawoona gold project is located in the East Pilbara district of the Pilbara Goldfield of Western Australia, approximately 150km south east of Port Hedland and approximately 25km south east of the town of Marble Bar. It is one of the highest margin and significant undeveloped gold projects in Australia.

Warrawoona project has a global resource of 21.3Mt @ 1.83g/t Au for 1.25 million ounces including a higher-grade component of 14.6Mt @ 2.37 g/t for 1.1 million ounces.

The project comprises of Klondyke open pit, St George open pit, Highway Shear chargeability anomaly, and the Chance prospect. It also contains three satellite deposits, Copenhagen, Coronation, and Fieldings Gully.

RC drilling programme at Klondyke

The company recently 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 higher confidence, JORC compliant Measured Resource category as part of the Company’s de-risking strategy.

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.

The company said that 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 .

Assays from 24 holes

CAI has now reported the assays from 24 holes representing 1,108m. The company said that the assays from the final 28 holes for 1,160m metres are pending and will be announced as received.

More significant intersections

The company announced that the resource upgrade drilling has reported strong results.

Significant hits include 12m @ 5.58 g/t Au from 12m; 15m @ 4.33 g/t Au from 6m; 36m @ 1.53 g/t Au from 12m; 20m @ 1.96 g/t Au from 20m; 21m @ 1.63 g/t Au from 9m; 6m @ 5.12 g/t Au from surface; 6m @ 5.11 g/t Au from 18m; 12m @ 2.49 g/t Au from 15m; 27m @ 1.01 g/t Au from 32m; 18m @ 1.28 g/t Au from 9m; 12m @ 1.81 g/t Au from 36m; 5m @ 4.25 g/t Au from surface; 16m @ 1.31 g/t Au from 30m; 10m @ 2.03 g/t Au from 30m; 19m @ 1.05 g/t Au from 6m; 6m @ 2.29 g/t Au from 45m; and 5m @ 2.72 g/t Au from 1m.

Diamond drilling

The company said that a programme of diamond core holes is also ongoing testing the down-dip extension potential of Klondyke mineralisation to accelerate conversion of Inferred resources to Indicated as part of the development work around a potential underground operation.

CAI said that to date 17 holes representing 2,017 m have been drilled with details to be released once geological logging and sampling are completed and assay results subsequently received.

Visible gold observed

The company said that one occurrence of visible gold was observed in each of diamond core tails 19KLDD061 and 19KLDD063, with three occurrences observed in 19KLDD062A.

CAI said that the visible gold is very encouraging and supports the company’s view that a substantial Mineral Resource and Mineral Reserve expansion opportunity exists below the Klondyke pit.

Calidus said that the detailed geological and structural logging and sampling is ongoing, and results will be reported once sampling is finalised and assay results received.

RC drilling update

CAI said that the regional RC drilling has been underway to the west of the Klondyke resource testing the location of the Kopcke’s Leader unit. To date 27 RC holes have been drilled for a total of 2,430m and assays will be reported when received.

The company said that 4 RC holes for 196m have also been drilled testing a hyperspectral target at Coronation North and assays will be reported when received.

Further work

Calidus said that the work planned for this quarter includes Klondyke diamond core drilling for further metallurgical testwork material.

The company reported that follow-up geological exploration is being planned and is expected to be undertaken over the next 12 months. This exploration may comprise detailed field mapping, ground and airborne geophysics, pXRF sample traverses, infill soil sampling, and drilling.

Management comments

Calidus Managing Director Dave Reeves said: “Drilling continues to intersect wide, high-grade mineralisation in the planned open pit. These results are frequently above the current average pit grade of 1.4gpt, they are shallow and they demonstrate excellent continuity of mineralisation.

This means the economic and technical outlook for Warrawoona continues to strengthen, with the potential returns growing and the risks falling.

In addition, the initial diamond core drilling to test the down-dip potential of the Klondyke mineralisation looks promising. While assays are pending, the geology intersected and visible gold observed by geologists supports our view that it is a good opportunity to grow the Resources and Reserves below the Klondyke pit.”

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Written By Christopher Norris
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