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- Gold explorer Calidus Resources (CAI) has signed a farm-in agreement with Gondwana Resources to earn up to 75 per cent of a WA-based gold tenement
- The tenement in question is located around 75 kilometres from Calidus’ existing Warrawoona gold project and along strike from the Gold Spec and Blue Spec deposits
- Calidus is in the process of acquiring both of these deposits, which collectively host 219,000 ounces at 16.3g/t
- The company will need to spend over $1 million on exploration work within five years to earn a 75 per cent stake
- CAI has advised it will begin drilling at the new tenement early next year
- Shares in the company have ended the week down a slight 0.86 per cent trading at 57.5 cents each
Calidus Resources (CAI) has signed a new farm-in agreement with Gondwana Resources to earn up to 75 per cent of a WA-based gold tenement.
The tenement in question is located around 75 kilometres from the gold explorer’s existing Warrawoona gold project in the East Pilbara region.
It’s also adjoining to and along strike from the Gold Spec and Blue Spec deposits, which collectively host 219,000 ounces at 16.3g/t and Calidus is in the process of acquiring.
Under the farm-in agreement, the gold explorer will have to spend a minimum of $500,000 within three years to earn a 51 per cent interest in the tenement.
To earn a 75 per cent interest, Calidus will need to spend a further $500,000 on exploration work within an additional two years.
“The farm-in arrangement with Gondwana provides Calidus with a low-cost consolidation opportunity in an underexplored and highly prospective mineral tenure along strike from the high-grade Gold Spec and Blue Spec deposits,” Calidus Managing Director Dave Reeves said.
“This additional ground increases our critical mass around Blue Spec where we envisage a satellite mining operation providing ore to the central Warrawoona processing facility,” Dave added.
The company has advised it will begin drilling at the new tenement and Blue Spec early next year.
It’s already begun drilling at its Coronation deposit within Warrawoona, receiving positive early results on Thursday.
Shares in Calidus Resources have ended the week down a slight 0.86 per cent trading at 57.5 cents each.
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