Calidus Resources Limited (ASX:CAI) Managing Director Dave Reeves provides an update on the company's key Warrawoona Gold Project in the Pilbara.
Rachael Jones: Hello I’m Rachael Jones for the Finance News Network. Joining me from Calidus Resources (ASX:CAI) is CEO, Dave Reeves. Welcome, Dave.
Dave Reeves: Thanks very much for having me.
Rachael Jones: First up, if we could just start with a brief introduction to your company?
Dave Reeves: Calidus is a gold exploration and development company. Our main project is the Warrawoona project, located in the Pilbara of Western Australia. It’s a very simple story. It’s a well-known goldfield, first mined in 1897. But it’s been held back from modern day development, because of a patchwork ownership. We’ve managed to consolidate that and hence, we’ve got a pretty exciting development opportunity coming up ahead.
Rachael Jones: Could you tell us a bit more about the size of the resource?
Dave Reeves: We actually only listed in June last year and we had a 400,000 ounce inferred resource. But we’ve since taken that,with just under 20,000 metres of drilling, to just over 700,000 ounces total indicated and inferred. So the indicated component of that is 541,000 ounces, so a really good base for the year ahead to launch from.
Rachael Jones: What is the stage of the project at the moment?
Dave Reeves: So it’s really exploration and drilling and I suppose development drilling, with that resource space. What we’re seeing in the year ahead is step out drilling on all directions from the orebody, because it is open in all directions. Lots of news flow coming with that, but really about drilling, adding resource space, cracking the magic million-ounce resource mark and building until we have enough resources, to supply at least a 100,000-ounce per annum goldmine, in the future.
Rachael Jones: Is there anything you can tell us about the plans for the year ahead?
Dave Reeves: When you compare the 20,000 metres we did last year, the coming year we’re doing 50,000 metres, so quite a step up. In parallel with that, we’ll be doing regional exploration. So the Klondyke area where the main resource is, is maybe a 7.5 kilometre long sheer zone. But outside that, we’ve got just over 360 square kilometres of tenure that we need to have a look at, really hasn’t seen much exploration at all. And any exploration was mainly done back in the 1980s. So we see a real opportunity there for blue-sky discoveries.
Rachael Jones: Now to finances. Can you give us an update on the requirements of funding?
Dave Reeves: We did a $10 million raise late last year, so we’re pretty well funded at the moment. Just over $9 million in the bank at the end of last quarter. So that sees us through the planned program for the year ahead.
Rachael Jones: Last question Dave. Why should someone invest in Calidus?
Dave Reeves: We think we’ve got a really solid resource base that underpins our evaluation, as we stand today. We’ve got that quite aggressive drill program coming up in the year ahead, lots of news flow and the aim of that drilling is obviously to add more resources. When you add more resources, you adding more value and therefore, you’d expect to see share price appreciation with that. We are looking at the regional side of the business as well, and you never know, there could be that big treasure trove waiting to be discovered out there. We’re one of the few independent gold explorer developers on the horizon. So we see it’s a good time to invest for people, who want that upside on discovery ounces, and just a very exciting year ahead.
Rachael Jones: Dave Reeves, thanks for the update.
Dave Reeves: A pleasure.