Join our daily newsletter At The Bell to receive exclusive market insights
- Calidus Resources (CAI) has begun drilling at its Otways gold-copper project
- In May, the company purchased the rights to acquire 70 per cent of the project through an earn-in deal with Rugby Mining
- Now, the company needs to complete 7200 metres of drilling and make $1,200,000 in cash payments to Rugby
- The first stage of exploration will involve five RC drills and one diamond turning on the Otways target, as well as six reconnaissance drills exploring the Malachite Flats target
- Calidus Resources shares closed 4.2 per cent in the red on Tuesday, trading for 57 cents each
Calidus Resources (CAI) has begun drilling at its Otways gold-copper project in the Pilbara region of Western Australia.
The company has planned five RC drill holes and one diamond hole for the Otways target, an area which has previously assayed highly for copper.
Previous drilling work conducted on the Otway deposit didn’t assay cores for gold, and Calidus hopes they can swoop on the missed opportunity.
However, it should be noted that those samples were taken in the 1960s.
Subsequent rock and chip sampling have returned grades as high as 13 grammes per tonne of gold.
The drilling will also include a further six drill holes on the Malachite Flats, a secondary target on the Otways site.
The company has planned reconnaissance drilling at Malachite, as that target has returned historic rock chip samples that assayed at 15.8 grammes per tonne of gold over a 600-metre diameter anomaly.
Calidus recently acquired the rights to acquire 70 per cent of the Otway project in an earn-in agreement with Rugby Mining on May 28, 2020.
The total deal is worth $1,200,000 in cash — paid to Rugby Mining — and requires Caliidus completes 7200 metres of drilling at the project over the next four years.
Calidus Mining Managing Director Dave Reeves said the drilling campaign was part of the company’s two-pronged approach to undertaking regional exploration, with Otways showing numerous enticing targets prospective for gold and copper.
“With the robust economics recently highlighted in the updated pre-feasibility study, we are rapidly heading towards the development of the 1.5 million-ounce Warrawoona gold project,” Dave said.
“With this in mind, we are targeting the addition of further reserves at the nearby satellite deposits of Fielding Gully and Coronation,” he continued.
“We are also very excited to be commencing drilling at the Otways prospect, where historic drilling and rock chips have identified both gold and copper anomalies that demand further testing,” Dave commented.
Calidus Resources shares closed 4.2 per cent in the red on Tuesday, trading for 57 cents each.
