Calidus Resources Limited (ASX:CAI) has obtained strong drilling results which highlight the potential for an open-pit operation at its Blue Spec East prospect in the Pilbara region of Western Australia.
The results come from the RC drilling campaign conducted in December 2021 and January 2022. Assay results, including multi-element geochemistry, have been received now for all drill holes.
The results better defined the shape of previously identified intersections and confirm that known mineralisation at depth continues to near the surface where it may be amenable to open-pit mining. Follow-up drilling is needed to determine the potential for an open-pit resource.
At Blue Spec, south of the main fault zone hosting the Blue Spec and Gold Spec deposits, drilling has confirmed that a newly identified zone is highly anomalous in gold and pathfinder elements.
At the historic Marble Bar Goldfield, drilling of the main quartz reef has confirmed the down-dip continuity of the reef with intersections of up to 2m @ 8.03g/t Au (including 1m @ 12.9g/t Au) present. The reef is open along strike and down dip.
“These results clearly demonstrate there is opportunity for additional mine life at Blue Spec beyond the current resource. In addition, anomalous gold results from a parallel shear are encouraging for the wider area where targeted soil sampling is scheduled to begin shortly,” Managing Director Dave Reeves.
“At Marble Bar, the initial drilling programme has demonstrated the presence of shallow high-grade gold down dip from the old workings. These results will be followed up with further drilling as this area may provide additional high-grade ore to Warrawoona given it is just 25km from the processing plant”.
At Blue Spec East, about 400m east of the old Blue Spec deposit (Figure 1), historic drilling yielded several significant intercepts. However, most of these intercepts were greater than 120m below surface and the geometry of the controlling structures was unclear. Drilling in January this year was designed to identify the potential for intercepts at depths shallow enough for an open pit and to provide a better understanding of the geometry of the mineralisation.
Thirteen holes for 1,034 m were drilled with the best intercepts, using a cut-off of 0.5g/t Au, consisting of:
- 52m @ 1.40g/t Au from 22m in 22BSRC010,
- 20m @ 1.41g/t Au from 44m in 22BSRC009,
- 10m @ 1.95g/t Au from 81m in 22SBSRC018,
- 10m @ 1.26 g/t Au from 34m in 22BSRC017, and
- 4m @ 2.42 g/t Au from 12m in 22BSRC016.
At present, the shape and orientation of the mineralisation is not well understood. Further drilling is required to refine the geometry and to establish the potential for an open-pit mineral resource. The mineralisation at Blue Spec East, unlike that at Blue Spec and Gold Spec on the main Blue Spec Shear, is low in antimony; almost all samples have <120ppm Sb.
Blue Spec Feasibility Study Update
The Blue Spec Feasibility Study is well advanced and is now expected to be released early in the September Quarter. Covid-related delays have impacted various aspects of the study, including laboratory test work and availability of technical consultants.
Metallurgy test work and mining studies (including Geotechnical) are largely completed. The processing route has been finalised, however Calidus is still awaiting key input costs being the Capex/Opex of the Sulphide Float Plant and underground mining costs which are being prepared on a non-binding request for proposal from specialist Underground Mining Contractors. In parallel, Calidus is also undertaking an Owner Mining Study, as an alternate operating strategy for a relatively small underground mining operation and the existing underground capability within the Calidus management team.
Calidus has also progressed all Environmental Base line studies for Regulatory Approval and is targeting submission of applications in the September Quarter. Based on feedback from Regulatory Agencies, permitting approvals to commence operations would be expected early in CY2023, which would align with the end of wet season in the Pilbara.
The Blue Spec Feasibility Study contemplates a new underground mine targeting existing resources below the historic Blue Spec and Gold Spec underground workings. The results contained within this announcement are outside of the existing resource and will provide opportunity to extend the Blue Spec mine life.
For further information please visit: https://www.calidus.com.au/