Bonanza and beyond: Caldius Resources hits unusually high gold grades in WA

Wed 18 Jan 23, 2:06pm (AEST)
A collection of gold nuggets against a black background with one specimen in the foreground
Source: iStock

Key Points

  • Caldius Resources, which recently declared commercial gold production at another project, hits high grades at Blue Spec
  • WA project contains the Felix prospect, currently of foremost interest to the company
  • “Bonanza” gold grades were hit at 25m depth; the company held $26m in cash at the end of the September quarter

Caldius Resources (ASX:CAI) shares were up 10% in the second hour of afternoon trade on Wednesday after posting one drillhole assay result of unusually high gold grades. 

The latest results pertain to drilling being carried out at its WA Pilbara-based Blue Spec Gold Project, advertised as one of the highest grade gold deposits in the country. The latest drill run targeted the Felix prospect on-site.

Of likely foremost interest to potential investors outside of grades, is that the company hit gold mineralisation in 25 out of 31 holes drilled, an 80% success rate at Felix.

It’s more good news for Caldius in a strong start to 2023. Earlier this month, the company declared it had hit commercial production at its separate Warrawoona Gold Project. 

Caldius Resources also manages a lithium project, giving it dual exposure to both precious metals and battery metals potential.

Extremely high grades 

Investor information provider Undervalued Equity classifies high-grade gold as that in concentrations over five grams of gold per tonne of ore (5g/t). Many Australian projects boasting grades at 4g/t are also considered high grade. 

Compare that to the latest results from Caldius: 

  • 06m @ 40.15g/t gold from 38m depth, including

    • 01m @ 220.17g/t gold at 39m depth

  • 07m @ 5.42g/t gold from 46m depth, including 

    • 02m @ 11.78g/t gold from 48m depth

  • 22m @ 1.36g/t gold from 34m depth 

A previous assay result at Blue Spec, reported back in November, turned up the following: 

  • 41m @ 2.37g/t gold from 32m depth, inc;uding 

    • 05m @ 3.4g/t gold from 37m depth 

    • 09m @ 3.43g/t gold from 62m depth

Two mineralisation styles 

The company posited the results from drilling so far shows two different styles of gold mineralisation present at Blue Spec. 

One is a high-grade mineral system hosted in a shear zone (underground geological formations typically conducive to mineralisation), and, “disseminated mineralisation” hosted in sandstone, indicating the lower grade hits reported last year. 

Management further noted bonanza gold grades (38g/t and above) were intersected down one drillhole at only 25m depth, indicating a relatively shallow deposit. 

“The Blue Spec deposit has been mined to 300m depth so to have intercepts similar in tenor at 25m depth obviously makes this our highest priority target to define,” Caldius MD Dave Reeves said. 

“In addition, the broader lower grade mineralisation could provide a sweetener.” 

Next steps 

Caldius will plug along with further activity to better define the literal shape of gold deposits underground at the project and ascertain wherever possible data towards a resource model. 

Reverse Circulation (RC) drilling (which collects rockchips from underground) will be executed in the coming weeks and months alongside a trenching program. 

Drilling will focus on the area of Felix where bonanza grades were found at 25m. 

Data from the upcoming drill run will then be used to inform the design of an infill campaign as Caldius works towards a thorough understanding of where gold is, and where it isn’t, on-site. 

Want to know more? 

Market Index’s free company data provides a number of first-stage considerations for investors looking at Caldius, including: 

  • Share price of 41.5c* 

  • Shares are up 10.67%*

  • Market cap of $181.9m* 

  • One year returns down -47.47% 

  • Year to date performance up 53.7% 

  • Four brokers recommend “Buy”, one recommends “Hold” 

  • Average 4 week volume of 1,101,252 shares 

  • Ranked 150 of 943 materials sector companies 

  • Caldius held $26.4m in cash at the end of September 

  • It spent $8m in opex in the same period 

  • It spent $19.1m in financing activities in the same period 

*As at 1330 AEST Wednesday 18 January 2023 

Three month charts for Caldius Resources
Three month charts for Caldius Resources


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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