Calidus Resources Limited (ASX: CAI) has entered into a Farm-in Agreement with Gondwana Resources which gives Calidus the right to earn up to 75% of a highly promising exploration tenement (E46/1026) located 75km from its Warrawoona gold project in WA’s Pilbara Region.
Calidus Managing Director, Dave Reeves, said the tenement is also located immediately along strike of the Blue Spec gold mine which is currently in the process of being acquired by Calidus.
The farm-in arrangement with Gondwana provides Calidus with a low-cost consolidation opportunity in an under- explored and highly prospective mineral tenure along strike from the high-grade Gold Spec and Blue Spec deposits,” Mr Reeves said.
“This additional ground increases our critical mass around Blue Spec where we envisage a satellite mining operation providing ore to the central Warrawoona processing facility.
“The Blue Spec shear has been mapped on the tenement, however, there has been no historic drilling. We intend to start exploration next year.”
Under the Farm-in, Calidus can at its election:
Stage 1: Earn up to 51% interest with an initial minimum exploration expenditure commitment of $500k within 3 years from the commencement date.
Stage 2: Earn up to 75% interest with a further $500k exploration expenditure commitment within 5 years of the commencement date.
If either party dilutes their interest to below 10% the interest will automatically revert to a net smelter royalty of 1.5%.
E46/1026 is located about 11km ENE of the township of Nullagine, in the east Pilbara region. The tenement is considered prospective for mineralisation like that at Blue Spec, which is less than 5km to the east of Gondwana’s project.
Historical drilling on the Blue Spec Fault Zone on M45/115 indicates that gold mineralisation extends over a 5km strike length, with gold being hosted in or adjacent to near-vertical quartz veins.