Calidus Announces 74% Increase in Resource to 712,000 ozs Au
241,250,000 Ordinary Calidus Shares Issued to Keras on conversion of Performance A Shares
Keras Resources plc, the AIM listed mineral resource company, is pleased to provide an update following an announcement published by Calidus Resources Limited (‘Calidus’). Calidus has announced a substantial increase in Mineral Resources and conversion of Inferred Mineral Resources to Indicated Mineral Resources at the Company’s Warrawoona Gold Project located in the Pilbara of Western Australia (the “Warrawoona Project”).
The total Mineral Resource at the Warrawoona Project, reported and classified in accordance with the JORC Code (2012) is 10.5 Mt at a grade of 2.11 g/t gold (Au) and contains 712,000 ozs Au. This has triggered the milestone for the conversion of 241,250,000 Performance A Shares held by Keras in Calidus to ordinary shares in Calidus.
· Total Mineral Resource, reported and classified in accordance with the JORC Code (2012) is 10.5 Mt at a grade of 2.11 g/t gold (Au), containing 712,000 ozs Au, an increase of 74% over the previous estimate
· Maiden Indicated Mineral Resource of 8.4 Mt at a grade of 2.01 g/t Au for 541,000 ozs Au
· Conversion of 241,250,000 Performance A Shares held by Keras to ordinary shares in Calidus
· Resource provides a solid base for further resource expansion in the coming year
· Well-funded post the recent AU$10m capital raise
· Calidus has received Exploration Incentive Scheme Grant of A$140,000 to conduct deeper drilling at Klondyke
Dave Reeves commented, “For Calidus to increase the resource base by 74% within 6 months of listing on the ASX, as a result of targeted drilling underpins the unique attributes of the Warrawoona Project, where outcropping gold mineralisation allows rapid and cost-effective ounces to be added to this rapidly expanding project. Calidus intends to maintain this momentum in the New Year with extensional drilling programmes planned, both down dip and along strike. In addition, Calidus plans to convert some of the large number of satellite targets to resource status during 2018. The planning for this is well supported by Calidus’ current cash position that allows a continuation of the aggressive work programmes they have pursued to date.
With the definition of over 500,000 ozs in the indicated category, the trigger for the conversion of Performance A Shares to ordinary shares in Calidus has now been reached. This will result in Keras holding a direct interest of 458,375,000 shares in Calidus. These shares are held in escrow until 22 June 2019, at which time the present intention of Keras is to distribute them to its shareholders. We believe Calidus will continue to expand the resource at the Warrawoona Project. In addition, Calidus has publicly stated that they plan to commence a PFS on the project before the end of 2018, subject to next year’s drilling results. The achievement of the final hurdle of the completion of a PFS study will result in the conversion of our holding of Performance B Shares and will take Keras’ total holding in Calidus to 723,750,000 ordinary shares.”
To view a full version of the Calidus announcement, which includes figures and maps, please click here:
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
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