Gold grade boost for Calidus at Warrawoona | Ralph-Lauren

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Set to be one of WA’s next gold miners, Calidus Resources has been buoyed by a clutch of solid RC infill drilling results at its under-construction stand-alone Warrawoona gold mining and processing operation in WA’s East Pilbara region that have exceeded the project’s average ore reserves grade of one gram per tonne gold.

Proved and probable mineable open-cut reserves for the Klondyke deposit, the bedrock of the Warrawoona development, currently stand at 12.1 million tonnes of ore going an average grade of 1 g/t for 401,000 ounces of contained gold. The ore reserves are defined within an overall open-pittable measured, indicated and inferred resource estimate for Klondyke of 39.6 million tonnes grading 0.89 g/t for 1.13 million ounces of gold including 27 million tonnes at 1.12 g/t for 973,000 ounces of contained gold.

ASX-listed, Perth-based Calidus says the resource validation drilling program comprising 27 shallow RC holes totalling 1,595 metres finished late last year was part of its de-risking strategy. The approach involves the company improving the drilling density and its geological understanding in sectors of the Klondyke open pit planned to be mined in the early years of the Warrawoona mining schedule.

On this occasion the latest round of infill drilling was vectored in on the westernmost end of the Klondyke open pit. Stand-out intersections from this drilling were 2m at 44.55 g/t gold from 11m including 1m at 88.65 g/t from 10m, 21m at 2.29 g/t from 2m including 2m at 9.37 g/t from 2m, 17m at 2.15 g/t from 36m including 1m at 23.9 g/t from 39m, and 6m at 3.93 g/t from 28m including 1m at 16.4 g/t from 29m.

Other notable gold hits included 19m at 2.31 g/t from 5m, 32m at 1.31 g/t from 15m, 18m at 1.78 g/t from 36m, 9m at 2.44 g/t from 42m, 8m at 2.31 g/t from 46m, and 21m at 1.23 g/t from 21m.

Calidus says the drilling not only continues to verify consistency and continuity of mineralisation within the Klondyke resource but has also added width to the primary ore zone in some areas.

Drilling continues to intersect wide high-grade zones within the planned open pit. These results from the shallow lodes are well above the current reserve grade of 1 g/t and demonstrate excellent continuity of mineralisation. With the recent completion of project funding, we will commence main project construction this quarter.

In addition, a couple of drill holes were put into the Highway shear prospect immediately adjacent to the planned Klondyke pit to follow up on low-grade rock chip samples and test historic workings.

One of them encountered an encouraging assay beneath the workings of 2m at 7.2 g/t gold from 16m. Further drilling was earmarked for the Highway shear zone to assess continuity of the best intercept from the limited program.

According to the company’s recent definitive feasibility study on Warrawoona, gold production at the new mine is expected to average about 90,000 ounces per annum over the first seven years of its mine life.

Calidus has previously indicated it was targeting production start-up at Warrawoona, approximately 25 kilometres south-east of Marble Bar, during the 2021-22 financial year.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au



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