Calidus Resources Limited announced strong assays results which reveal a high-grade zone within the recent Felix discovery at the Blue Spec project. High-priority assays from the first two holes were reported to the ASX on 28 November 2022, "New gold discovery 65km from Warrawoona project in the Pilbara"2. The drilling program initially comprised 19 widely spaced scout holes to test approximately 2km strike length of a zone of strong gold-in-soil anomalies associated with the Blue Spec Fault Zone3 and extending for more than 3km. Following receipt of results from the first two holes, another 12 holes were added to the program.

Owing to the hilly topography, a small-footprint rig was used for the maiden program. The drilling results show the likelihood of two mineralisation styles: high-grade shear- hosted gold possibly analogous to the one ounce per tonne Blue Spec and lower-grade, broad zones of gold hosted in sandstone. Importantly, the bonanza-grade intercept in hole 22GORC016 is located only 25m below surface.

Exploration Licence 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 the Blue Spec mine, which is less than 5km to the east of E46/1026. The absence of any historic stream sediment and soil sampling and drilling on E46/1026 means that the potential of the tenement is largely untested.

Furthermore, there is no evidence of any prospecting activity, modern or historic, in the area. The entire tenement lies within metasedimentary rocks of the 2980-2930 Ma Mosquito Creek Basin. Gold deposits across the basin largely consist of quartz-vein hosted Au±Sb mineralization4 associated with flexures or oblique cross-cutting structures of the main E- to ENE-trending shear zones.

The deposits at Blue Spec and Gold Spec, immediately east of E46/1026, are very high-grade, narrow quartz lodes. The results of a Feasibility Study on the Blue Spec and Gold Spec deposits were released on the 29 September 20225. On 2 August 2022, Calidus announced a zone of strong gold-in-soil anomalism defined over >3km strike length within the Blue Spec Fault Zone on E46/1026 west of the Blue Spec mine3.

The main zone of anomalism is coincident with an outer envelope of carbonate alteration, an inner envelope of hematite alteration, and quartz-ankerite veins. Thirty-one holes for 3,081m were drilled in November 2022. The original 20-hole program consisted of lines spaced about 150-200m apart, depending on where topography allowed ready access for the drill rig.

Nine additional holes comprising infill lines were drilled, mainly in the western part of the area. Another three holes were drilled at -60° underneath holes drilled at -40° to provide better constraints on the orientation of mineralised zones. The best intercepts, using a cut-off of 0.5g/t Au, a minimum width of 1m, and a maximum of 2m of internal waste, consist of: 6m @ 40.15g/t Au from 38m (including 1m @ 220.17g/t Au from 39m) and 9m @ 1.07g/t Au in 22GORC016, 7m @ 4.52g/t Au from 46m in 22GORC004 (including 2m @ 11.78g/t Au from 48m), 22m @ 1.36g/t Au from 34m and 19m @ 1.13g/t Au from 60m in 22GORC023, 7m @ 0.86g/t Au from 70m in 22GORC 024, and 6m @ 0.88 g/t Au from 86m in 22BSRC029.

These results are in addition to the intercept of 41m @ 2.37g/t Au from 32m in 22GORC009 previously reported on the 28 November 20222. At Felix east, mineralisation appears to be shear hosted, but with locally bonanza grades as exemplified by hole 22GORC016. This mineralisation style is accompanied by thin haloes of low-grade material.

Mineralisation is located within or close to the interpreted position of the Blue Spec Fault Zone. The high-grade intercept in 22GORC016 is located only about 25m below surface and, therefore, may be amenable to an open pit operation. At Felix west, most of the mineralisation is lower grade but more diffuse and is associated with disseminated pyrite (or its weathered equivalent, hematite, at or near surface) predominantly in sandstone.

This style of mineralisation is typified by the intercept in hole 22GORC009 of 41m @ 2.37g/t Au and is characterised by fairly consistent grades. Lithology may be a strong influence on this style of mineralisation, but the nature of any other structural controls is unclear. Initial follow-up work will include a program of trenching to provide a better understanding of the attitudes of mineralised structures and the degree of folding in the sedimentary succession.

A small program of RC drilling will be carried out around high-grade intercepts to better define the plunge and strike extent of bonanza-grade portions of the mineralised system. The trenching and RC drilling targeting the bonanza-grade portions of the system will be used to design a program of diamond drilling to identify the structural controls on mineralisation and to provide material for metallurgical tests and geophysical properties. These data will be used to inform programs of infill RC drilling and deeper RC drilling to enable rapid progression of the area to Resource status.