Calidus Resources (ASX:CAI) hits high grade gold zone within Felix discovery, WA

• Calidus Resources (CAI) identifies a high-grade gold zone within the Felix discovery at the Blue Spec project in Western Australia
• Assay results from the company’s maiden drilling program returned a peak intersection of six metres at 40 grams per tonne (g/t) gold
• Additionally, all but six of the 31 drill holes completed contained at least one significant intercept, with several holes containing multiples
• Follow up trenching and reverse circulation drilling is now being planned to better understand the mineralisation before undertaking deeper diamond drilling
• Calidus shares are up 11.3 per cent trading at 41.8 cents at 11:55 am AEDT

Calidus Resources (CAI) has identified a high-grade gold zone within the Felix discovery at the Blue Spec project in Western Australia.

Assay results from the company’s maiden drilling program returned a peak intersection of six metres at 40 grams per tonne (g/t) gold, including one metre at 220.17 g/t gold from 39 metres downhole.

According to Calidus, this intersection was 25 metres below surface.

Additionally, all but six of the 31 drill holes completed contained at least one significant intercept, with several holes containing multiple intercepts.

From the assays, Calidus observed the presence of two mineralisation styles: a high-grade, shear-hosted mineralisation analogous to the Blue Spec deposit, plus disseminated mineralisation.

Considering the Blue Spec deposit was mined to 300 metres and returned intercepts of a similar tenor, Managing Director Dave Reeves said this is now the company’s highest priority target to define, as it could “significantly” alter the economics of the greater Blue Spec project.

The latest results follow on from those received in November from the first two drill holes in the program, which returned 41 metres at 2.37 g/t gold from 32 metres.

All up, Mr Reeves said the initial program had “exceeded all expectations”.

“To have hit bonanza grades that are analogous to the nearby one ounce per tonne Blue Spec deposit is very exciting.”

Additionally, the results come from an area just 65 kilometres from the company’s Warrawoona project and Mr Reeves said the broader, lower grade mineralisation could provide a “sweetener” to the Warrawoona Plant, as its tenor appears to be higher than that currently being processed.

Moving forward, the company has planned a follow-up trenching program to better understand the attitudes of mineralised structures and the degree of folding in the sedimentary succession.

A small reverse circulation drilling program will also be carried out around high-grade intercepts to better define the plunge and strike extent of bonanza-grade portions of the mineralised system.

Once complete, the data from both the follow-up trenching and drilling work will be used to design a diamond drilling program to identify the structural controls on the mineralisation, plus provide material for metallurgical tests and geophysical properties.

Calidus shares were up 11.3 per cent trading at 41.8 cents at 11:55 am AEDT.