01/02/2021 - 15:44

Calidus ties up ground around Warrawoona

01/02/2021 - 15:44

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Calidus Resources has tied up the remaining 30 per cent interest in eight exploration tenements and three application areas surrounding its rapidly developing Warrawoona gold project in a deal with co-owner and fellow Pilbara gold developer, Novo Resources. The final consideration for Calidus to lock up 100 per cent-ownership of the ground was a one per cent net smelter royalty across the tenements payable to Novo upon production.

Calidus Resources has tied up the remaining 30 per cent interest in eight exploration tenements and three application areas surrounding its rapidly developing Warrawoona gold project in a deal with co-owner and fellow Pilbara gold developer, Novo Resources.  The final consideration for Calidus to lock up 100 per cent-ownership of the ground was a one per cent net smelter royalty across the tenements payable to Novo upon production.

The ground is strategic for Calidus as it sits around Warrawoona’s core gold deposits, the Klondyke and Klondyke East pits.

Calidus has also completed a $5m payment to Novo to take its interest in the Blue Spec gold and antimony project to 25 per cent.  Blue Spec has an existing resource of 219,000 ounces at a whopping 16.3 g/t gold and 5.2kt of antimony.

Notably, Blue Spec sits within a 75km radius of Warrawoona and has seen historical production of around 60,000 ounces of gold at more than 25 g/t.  Calidus plans to pursue the establishment of a regional gold production hub at Warrawoona with the future integration of Blue Spec a key plank in its strategy.

Calidus Resources Managing Director, David Reeves said: “The purchase of the 30% interest in these tenements not only consolidates ownership in these key exploration and infrastructure tenements but also assists greatly in funding and operational administration by reducing cross ownership and guarantee structures.”

“In addition, the work we are completing on the high-grade Blue Spec Scoping Study has given us the confidence to secure 25% of the project via a $5m payment, we look forward to announcing the results of the Scoping Study this quarter”.

Calidus’ Klondyke deposit, the central plank of its fully funded Warrawoona development, is located 25km south of Marble Bar in WA’s East Pilbara and Blue Spec is a further 75km southeast of Klondyke. 

Klondyke currently contains a measured, indicated and inferred resource of 42.3Mt at 1.02 g/t for 1.4Moz of contained gold and an ore reserve, both open pit and underground, of 14 million tonnes grading of 1.2 g/t for 521,000 ounces of contained gold.

With a large spread of wholly owned exploration ground to test and satellite deposits to work up, the company looks well placed to produce regular news flow as it looks to make good on its promise of becoming a 100,000 ounce per annum gold producer.

 

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

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