- Calidus Resources (CAI) receives ‘exceptionally high-grade’ results from a drilling program at the Blue Spec project in WA’s Pilbara
- Assay results include up to 101g/t gold from 196 metres which the company says confirms the high-grade nature of the project
- Calidus aims to start developing Blue Spec once steady state production is achieved at the Warrawoona operation
- First gold production from Warrawoona is anticipated in the June quarter of next year
- Calidus Resources is up 6.96 per cent, trading at 61.5 cents at 11:55 am AEDT
Calidus Resources (CAI) has received ‘exceptionally high-grade’ results following a drilling program at the Blue Spec project in Western Australia’s Pilbara region.
Blue Spec is located 75 kilometres from the company’s Warrawoona project, where construction is underway.
Assay results from a recently completed definitive feasibility study (DFS) drilling program returned up to 101 grams per tonne (g/t) gold from 196 metres which Calidus said confirms the high-grade nature of Blue Spec.
The company identified multiple occurrences of visible gold with assays including 2.55 metres at 44.1g/t gold from 413.25 metres. These results will form part of a mineral resource update for the DFS.
CAI said a key driver for the Blue Spec project is to fund its development out of operating cash flow from Warrawoona operations.
The materials stock aims to start development at Blue Spec once steady state production is achieved at Warrawoona. At that point, Blue Spec will increase annual production to 130,000 ounces at peak.
First gold production from Warrawoona is anticipated in the June quarter of next year.
Calidus Resources was up 7.83 per cent, trading at 62 cents at 12:12 pm AEDT.