Strategically Located Project Has Strong Upside
Calidus Resources Limited (ASX:CAI) has entered into a Heads of Agreement which gives it the right to earn up to 70% of the highly prospective Otways Project just 50km from its Warrawoona Gold Project in the Pilbara Region of Western Australia.
Limited exploration in the 1960s and again in the 1980s returned highly promising gold and copper results. Despite these results, the area has not been subject to any modern exploration techniques.
The Otways Project contains historic Cu-Au prospects at Otways (Doherty) and Reedies, and Cu-Pb-Zn mineralisation at Copper Gorge. In addition, broad copper and gold anomalies in soils have been identified at Malachite Flats coincident with a HoistEM anomaly. The anomalism at Malachite Flats has not been drill tested.
Calidus Managing Director, Dave Reeves, said Otways has strong exploration potential and was strategically located.
“As we move towards development of the Warrawoona Gold Project, we are looking to expand our Pilbara exploration potential to ensure a healthy pipeline of gold projects as both satellite deposits for Warrawoona and as potential standalone developments”.
“Otways offers substantial exploration upside, and its proximity to Warrawoona opens the door to a range of potential development scenarios. The tenements have some prior exploration with impressive initial copper intercepts but they have never been assayed for gold which remains our core focus. The project area has confirmed porphyry-style mineralisation outcropping at surface, and we believe the upside is substantial.
“With the Warrawoona DFS set for completion in the coming quarter and drilling planned to start at the Otways Project later this year, we are rapidly building a substantial asset base in the Pilbara of Western Australia.”
The main terms of the Heads of Agreement with Rugby Mining Limited (RUG:TSX-V) are as follows:
- Calidus to spend $200,000 including 1,200m of RC drilling within 12 months
- Calidus has the option to spend a further $500,000, including a minimum of 3,000m of RC drilling, within 30 months of commencement to earn 50%
Calidus has the option to spend an additional $500,000, including a further 3,000m of RC drilling, within 48 months of commencement and issue $250,000 worth of Calidus stock at the completion of the spend using a 20 day VWAP to earn 70%
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