Calidus strikes more gold at Pilbara deposit, kicks-off drilling with Novo

Calidus Resources ASX CAI Klondyke Pilbara deposit drilling Novo
Calidus Resources' Klondyke prospect located in the Pilbara, Western Australia.

Pilbara-focussed gold explorer Calidus Resources (ASX: CAI) has uncovered more gold at its Klondyke deposit, part of the company’s flagship Warrawoona gold project, with further drilling planned at its joint venture prospect Klondyke East with partner Novo Resources (TSXV: NOV).

The 15,611m drilling at Klondyke and satellite deposits Copenhagen, Coronation and Fieldings Gully has been completed and, so far, returned multiple shallow gold intercepts from Klondyke including 63.31gpt, 5.85gpt and 6.83gpt.

“RC [reverse circulation] drill results to-date demonstrate geologically the potential of the broader regional system to host both high-grade and high-value mineralisation and larger-scale lower grade bulk tonnage mineralisation,” Calidus managing director Dave Reeves said.

Mr Reeves added the company was still awaiting initial assays from drilling at Copenhagen, Coronation and Fieldings Gully as well as results from two diamond holes at Klondyke.

In late September, Calidus Resources announced it had entered a joint venture with Canada-based Novo Resources (TSXV: NVO), where Calidus had the option to acquire a 70% stake in several Novo Resources’ tenements totalling 184 square kilometres surrounding its Warrawoona gold project.

The tenements under the joint venture with Novo Resources include Klondyke East and are believed to comprise direct extensions to the Klondyke shear, with previous drilling in the area returning gold grading up to 5.58gpt.

“With the completion of the recent joint venture deal with Novo Resources and the heavily over-subscribed placement, I am pleased to report that we will begin reconnaissance drilling on the recently joint ventured Novo Resources ground immediately east of the existing resource,” Mr Reeves said.

“This area has seen limited drilling that confirms the mineralised Klondyke shear structure persists for at least another 5km and provides an exceptional target for potential rapid along-strike expansion of the current resource,” he added.

The company will also be reviewing detailed geophysical imagery to better-understand the mineralisation in the area.

In addition to the 5,000m in reconnaissance drilling planned at Klondyke East, Calidus Resources hopes to announce further assays and a resource upgrade in the coming weeks.

Pilbara home to modern gold rush

Western Australia’s Pilbara region has been home to a modern gold frenzy in recent months, with hundreds of gold nuggets discovered in the region.

The nuggets are believed to come from conglomerate-style mineralisation, which has been likened to the world’s largest gold deposit in South Africa.

Novo Resources and Artemis Resources’ (ASX: ARV) triggered the rush after finding the gold conglomerate-style mineralisation at the joint venture’s Purdy’s Reward prospect.

De Grey Mining (ASX: DEG) has also identified numerous gold nuggets across its tenements, with most explorers in the area enjoying substantial spikes to their stock prices in the last few months.

Calidus Resources’ stock has soared more than 150% since August from $0.02 to $0.05.