LONDON (ShareCast) - (Sharecast News) - Mineral resource company Keras Resources confirmed on Thursday that Calidus Resources had announced the discovery of a new gold strike extending over 1,000m at St Georges Shear prospect, located about 150m north of the current 654,000-ounce Klondyke resource.
The AIM-traded firm said the updated indicated mineralisation from surface level, which runs in a parallel shear to the Klondyke resource.

It said the news followed recent drilling results from its Warrawoona Gold Project in the Pilbara of Western Australia, as Calidus continued to undertake a large resource infill and extension programme across the Warrawoona project with the aim to expand the current resource in order to support a pre-feasibility study in 2019.

Keras is a significant shareholder of Calidus, with a current interest of 458m shares, representing about 35% of Calidus' total issued share capital.

On successful completion of the pre-feasibility study at Warrawoona, an additional 265m performance shares of Calidus owned by Keras would be converted into ordinary shares.

"Calidus' discovery of an additional 1,000m gold strike at St Georges Shear verifies the geological targeting model and has increased company confidence in its potential to materially increase its current global resource of 712,000oz Au at a grade of 2.11g/t," said Keras chief executive officer Russell Lamming.

"Importantly, the shallow intersections reported at St Georges indicates near surface gold potential which adds weight to any prospective developments at Klondyke, located only 150m to the south of this new discovery."

Lamming added that Calidus intended to carry out further drilling within the specific area, and in the wider Warrawoona area, in order to prove up the wider resource potential of the project.

"Thanks to three drill rigs currently operating across the project, we can anticipate increased regularity in the reporting of results."

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