Further drilling at Calidus Resources’ (ASX: CAI) advanced Warrawoona gold project in the Pilbara has pulled up numerous gold intersections including a 1m interval grading 107.16 grams per tonne gold.
Calidus has now received the remaining results from its 42-hole reverse circulation drilling campaign, which tested the proposed Klondyke and St George open pits, a section of the Highway Shear and the Chance prospect.
Of the 11 holes drilled at the St George pit design, Calidus unearthed 13m at 11.1g/t gold from 30m, including 1m at 107.16g/t gold from 36m.
Other assays were 13m at 5.58g/t gold from 46m and 12m at 1.73g/t gold from 23m.
Meanwhile, drilling at the eastern side of the planned Klondyke pit returned 10m at 6.81g/t gold from 47m, including 1m at 50.77g/t gold from 49m.
The best intercept from the Highway Shear was 1m at 0.57g/t gold from 48m, while the highest-grade intersection at the Chance prospect was 1m at 1.46g/t gold from 27m.
A 12,000m drilling program underway at Klondyke is targeting extensions to the deposit’s underground resource and updating the current resources to the east of the planned open pit.
The company hopes to release a revised resource estimate before the end of the March quarter in 2020.
Warrawoona pre-feasibility study
Exploration builds on the pre-feasibility study Calidus’ released for Warrawoona earlier this month.
The study is underpinned by a maiden reserve of 8.93Mt at 1.5g/t gold for 418,000oz and a resource of 21.2Mt at 1.83g/t gold for 1.25Moz.
To bring Warrawoona online, the study assumes capital expenditure of $95 million will be required to develop a conventional carbon-in-leach 2Mtpa operation for an initial six years.
Gold will be mine via both open pit and underground and Calidus is expected to recover 580,000oz gold over the six years and generate $1.045 billion in revenue for life of mine pre-tax cashflow of $367 million.
The pre-feasibility study estimates all-in-sustaining costs will average A$1,159/oz of gold produced.
By mid-morning, shares in Calidus had risen 10.71% to reach $0.031.