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- Calidus Resources (CAI) wraps up a drilling program as part of its Blue Spec definitive feasibility study (DFS) in Western Australia’s Pilbara region
- The company is aiming to grow production at the Warrawoona Gold Project to 139,000 ounces per annum (ozpa) from the 105,000ozpa reported in March
- CAI drilled four holes at the Blue Spec deposit with assays set to inform an update of the DFS resource, which is 219,000 ounces at 16.3 grams of gold per tonne (g/t)
- Managing Director Dave Reeves says the drill holes hit visible gold, with the core to be used in metallurgy test work and mining studies now underway
- Shares closed down 4.46 per cent to 53.5 cents each
Calidus Resources (CAI) has wrapped up a drilling program as part of its Blue Spec definitive feasibility study (DFS) in Western Australia’s Pilbara region.
The company is aiming to grow production at the Warrawoona Gold Project to 139,000 ounces per annum (ozpa), compared to 105,000ozpa quoted in the Warrawoona study announced to the ASX back in March.
To this end, CAI drilled four diamond holes at the Blue Spec deposit, which lies 75 kilometres from Warrawoona. The assay results will form part of a DFS resource update, with the current resource measuring 219,000 ounces at 16.3 grams of gold per tonne (g/t).
In a statement today Calidus said construction at Warrawoona was already well advanced with production planned for the June quarter next year.
In light of the completed drilling program, CAI said its strategy to grow the project’s production rate was also proceeding to plan.
Accordingly, the company is aiming to start development at Blue Spec once it achieves steady-state production at Warrawoona.
CAI’s managing director Dave Reeves said the four diamond holes would form an important part of the Blue Spec DFS.
“These are the first holes we have drilled at Blue Spec and it is very comforting to have intersected visible gold,” he said.
“The results will form part of the DFS resource upgrade and the core will also be used in the testwork and studies now underway.”
Meanwhile, the company has awarded GR Engineering Services, listed on the ASX under ticker code “GNG”, the feasibility study for the sulphide plant planned for construction at Warrawoona to process Blue Spec ore.
Environmental baseline studies are reportedly ticking along ahead of a mining proposal intended for submission in the March quarter next year.
Shares closed down 4.46 per cent to 53.5 cents each.
