Calidus Resources (ASX: CAI) has grown its resource inventory by 75% to 1.25 million ounces at its Warrawoona gold project in Western Australia’s Pilbara.
The global measured, indicated and inferred resource for Calidus’ Warrawoona project now totals 21.2 million tonnes at 1.83 grams per tonne gold for 1.25Moz of contained gold.
According to the company this is 75% increase on contained gold resources compared to the previous estimate released in December 2017 of 10.5Mt at 2.11g/t gold for 712,000oz gold.
Although the contained gold has increased, the actual grade shrunk by 13%.
However, the updated resource does possess a slightly higher-grade component of 14.6Mt at 2.37g/t gold for 1.1Moz.
“To effectively triple our high-grade resource base to 1.25 million ounces within 18-months of listing highlights the unique attributes of the major gold system at Warrawoona,” Calidus managing director David Reeves said.
Mr Reeves noted the resource was shallow and close to “high-quality infrastructure” as well as operating mines in the region.
The updated resource was underpinned by an exploration campaign last year where 260 holes were drilled for 36,651m across Klondyke and surrounding satellite deposits.
Klondyke, alone, accounts for more than 90% of the resource inventory at the project. As a result, Calidus stated it was focusing on this deposit for potential mine development.
Additionally, metallurgical test work on ore samples has established the mineralisation is free milling and amenable to gravity and cyanide extraction.
“The updated resource will underpin the pre-feasibility study that is due for completion in [the September quarter of this year] and the subsequent bankable study as we continue our strategy of becoming a low-risk, near-term gold producer,” Mr Reeve said.
With the resource remaining open at depth and along strike, Mr Reeves added there was “obvious opportunity” to grow the estimate.
Calidus plans to carry out infill and extensional drilling to add confidence and expand the updated resource.
Additionally, reconnaissance drilling will be carried out at high-priority targets in 2019 to uncover higher-grade satellite deposits as a potential ore feed source.
By early afternoon trade, shares in Calidus had gained almost 30% to reach $0.031.