Calidus Resources Limited announced the results of a soil sampling program conducted in June and July 2022. A total of 1,115 samples were collected over three areas on E46/1026: a main zone on a 200 x 40 m grid and two
smaller areas on 100 x 50 m grids. Blue Spec West (E46/1026); Exploration Licence E46/1026 is located about 11km ENE of the township of Nullagine, in the east Pilbara region (Figure 1). 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. The entire tenement lies within metasedimentary rocks of the 2980-2930 Ma Mosquito Creek Basin. Gold deposits across the basin largely consist of epizonal, quartz-vein hosted Au±Sb mineralization2 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 Blue Spec and Gold Spec deposits are currently the subjects of a Feasibility Study that is expected to be released in the September quarter3. The Blue Spec Feasibility Study contemplates a new underground mine targeting existing resources below the historic Blue Spec and Gold Spec underground workings. The soil samples were collected by XM Logistics from mid-June to mid-July 2022. The sample grids were designed to further reduce the search space for gold mineralisation following a stream sediment sampling program in 2021 that highlighted three main areas of interest. Soil geochemistry results; Results were obtained from three grid areas: main, northern, and southern. The main area shows a belt of enhanced gold values parallel to the regional strike of the main structures in the area. The highest values are associated with paragonite alteration, which is known to be associated with gold mineralisation along the Blue Spec Fault Zone farther east4. The belt of highest values is coincident with a sharp, steep gradient in paragonite abundance on the north side of the Blue Spec Fault Zone . The overall tenor of the gold values decreases westwards along the Blue Spec Fault Zone. This drop-off in higher values roughly coincides with the western end of an east-west gravity ridge that underlies much of the Blue Spec Fault Zone. The precise cause of the high-density anomaly is unclear, but it relates to the deep architecture of the Mosquito Creek Basin; its coincidence with gold deposits further east suggests it has implications for prospectivity along the fault zone. The overall tenor of the gold values decreases westwards along the Blue Spec Fault Zone. This drop-off in higher values roughly coincides with the western end of an east-west gravity ridge that underlies much of the Blue Spec Fault Zone.
The precise cause of the high-density anomaly is unclear, but it relates to the deep architecture of the Mosquito Creek Basin; its coincidence with gold deposits further east suggests it has implications for prospectivity along the fault zone. Along the main sampling grid, the enhanced gold values are located along the northern side of the Blue Spec Fault Zone in a corridor marked by numerous oblique fault structures and fold hinges). This contrasts with the zones to the north and south which are dominated by ENE-striking structures and parallelism. Oblique structures and broken fold hinges are important elements controlling mineralisation at Blue Spec and Gold Spec along the Blue Spec Fault Zone farther east. Elevated gold values show a strong spatial association with one of these oblique faults. The northern grid shows one small area of anomalous values but the significance of this is not yet clear. This grid was
marked by modest enrichment of arsenic in stream sediment samples (As being a pathfinder element for gold in the Mosquito Creek Basin) but no anomalous gold. The southern grid was designed around one anomalous gold value in a stream sediment sample but contains almost nothing above detection limit in the soils. This is consistent with the lack of paragonite alteration and structural complexity over the southern grid. The exploration team has already started field work to examine the corridor of elevated gold values along the Blue Spec Fault Zone. They have reported an envelope of carbonate alteration coincident with high Au-in-soil values as well as quartz-ankerite veins and hematite-filled fractures and pockets possibly after sulphides. Sericite/muscovite alteration appears to be coincident with the hematite. The hematite and sericite/muscovite envelopes are narrower than the carbonate alteration envelope. A representative selection of the soil samples will be sent to a laboratory in Perth to be analysed for Au by fire assay and multi-elements by ICP following a 4-acid digest.