Calidus Resources announced that a study on the integration of the high-grade Blue Spec Project into the mine life of its Warrawoona gold project in WA forecasts a significant increase in production and operational cashflow for little additional capital expenditure. Calidus proposes that Blue Spec, which is 70km from Warrawoona, would be an underground mine with the ore trucked to Warrawoona for treatment at its planned parallel sulphide circuit, reducing overheads and infrastructure requirements required for Blue Spec while leveraging the infrastructure and personnel based at Warrawoona. Trucking the ore from Blue Spec is a practical option given the low-volume, high-grade nature of Blue Spec ore as well as the existing regional road infrastructure. Calidus has agreed revised terms for the acquisition of 100% of the Blue Spec Project with Novo Resources Corp. (Novo) 3 with a final cash payment of AUD 5 Million by 31 March 2021 and the issue of 13.3m shares due by 16 April 2021 4. The shares have been agreed to be issued by Calidus pursuant to its 15% placement capacity under ASX Listing Rule 7.1. Blue Spec: The Blue Spec deposit was discovered in 1906. Early mining to a depth of 180m vertical was undertaken by following the vein system one level at a time. The historical ore grade cut-off in the upper levels was 22 to 28g/t and as a result, only a small proportion of upper-level ore was mined. Anglo American (Anglo) acquired the Blue Spec mine in 1974 and defined an Ore Reserve from the 180m to 320m vertical level. Anglo sunk a new triple compartment shaft to the 180m level and developed decline access to the Reserve. Anglo utilised mechanised cut and fill mining methods with average stope widths of approximately 2m. Stoping of the orebody to widths of less than 1.8m in the western extent of the Blue Spec orebody during the last period of production achieved lower dilution rates with production exceeding 36g/t gold and 3.5% antimony. Anglo closed the mine in 1979 once the original Reserve blocks had been extracted. Historically, the Blue Spec mine has averaged production in excess of 25g/t gold with over 60,000oz of gold and 1,500 tonnes of antimony produced from the mine.