Calidus Resources announced that it will imminently commence several programs of RC drilling as part of the Company's strategy to grow the Warrawoona Gold Project in WA's Pilbara. At the Blue Spec Project, Government gravity data and multi-client aeromagnetic data have been reprocessed and interpreted by Southern Geoscience Consultants (SGC). RC drilling will target a newly identified zone of carbonate-sericite alteration and quartz-ankerite?pyrite veins south of the Blue Spec shear. At the Company's flagship Warrawoona Gold Project, RC drilling will target a high-grade quartz reef at Marble Bar, which was the focus of historic mining, and carbonate-sericite alteration with quartz-ankerite?pyrite veins west of the Klondyke deposit. At the Warrawoona Gold Project, strong progress continues to be made on construction ahead of mill commissioning. About 8km west of the Klondyke deposit, a zone of shearing, accompanied by carbonate and variable sericite and fuchsite alteration, and quartz-ankerite veins with goethite after pyrite in wall rocks and veins was mapped. The zone is up to 50m wide and was traced for nearly 4km along strike. In 2002, five short RC holes were drilled beneath small prospectors' pits and into a zone of carbonate alteration by Image Resources. The best result was 0.14 g/t Au over 4m from 36m in hole CNERB-03. However, the holes were probably too short to test the main part of the shear and strong water flows noted by Image Resources may have compromised the integrity of the samples. Thirteen RC holes are planned to test the shear along its strike length. The Warrawoona Gold Project includes E45/5172, a tenement that encompasses the northern part of the historic Marble Bar goldfield immediately north of the town of Marble Bar. This field produced nearly 1,300kg of gold until about 1950, mainly from the Homeward Bound and Stray Shot group of mines. Mineralisation is hosted in a quartz reef that strikes north to northwest and dips at 10? to 20? to the west. In 1982, Consolidated Exploration Ltd. drilled a series of very shallow RC holes adjacent to the Marble Bar quartz reef, five of which were located on E45/5172 in the current area of interest. Several of the collars were located in the field; the details of the five holes and significant intercepts. Two of the holes drilled near the Nabob workings returned 3m @ 3.07 g/t Au from 17m and 1m @ 4.33 g/t Au from 19m. In 1997, Britannia Gold NL drilled 6 shallow RC holes (BS01-BS06), the deepest of which was only 42m, close to the reef. These holes are located on a Mining Lease excised from E45/5172. Only 4m composites were assayed, but the best results were 8m @ 4.45g/t Au from 16m in hole BS04 and 4m @ 4.43g/t Au from 16m in hole BS03. Mapping along the northern end of the workings shows that the reef has an envelope of carbonate and weak sericite alteration. No deeper holes have been drilled to test the depth extent of the quartz reef, which remains open down dip. A small RC program has been designed to test the potential for mineralisation in the quartz reef over 350m of strike length and down dip. The Blue Spec Project comprises two granted Mining Leases (M46/244 and M46/115), two granted Exploration Licences (E46/1026 and E46/1035), and one Prospecting Licence (P46/1972) under application. Calidus recently reported assays from the completed Definitive Feasibility Study (DFS) drilling program at the Blue Spec Project7 about 15km ENE of Nullagine, in WA's Pilbara region. The Company is in the process of earning into an Exploration Licence, E46/1026. E46/1026 has seen no modern exploration; there are no historic stream sediment samples, soil samples or drill holes located on the tenement. To most efficiently and cost effectively narrow down the search area for gold deposits, a stream sediment sampling program was designed with 76 sites selected. XM Logistics carried out the program in July and samples were sent to the laboratory shortly afterwards. Considerable delays have been experienced with the laboratory, but assay results are expected very shortly. Multi-client aeromagnetic data and government gravity data were processed by SGC, who provided Calidus with a regional structural interpretation of the Blue Spec Project area (Figure 4). The data shows that the Blue Spec Fault Zone is coincident with an E-W gravity ridge that extends to the west onto E46/1026. The gravity data maps the deep architecture of the Mosquito Creek Basin, although the precise cause of the anomaly is unclear: however, the coincidence of gold deposits with the high-density blocks suggests it has implications for gold prospectivity. Detailed structural mapping has begun around the Blue Spec pit to better understand the key factors in localising gold mineralisation along the Blue Spec Fault Zone. The exploration team has also carried out structural logging of core from the DFS drilling program at Blue Spec. Multi-element geochemistry and hyperspectral data are being collected on the core. These findings will be important for targeting more favourable structural zones on E46/1026 and in determining the best geophysical techniques to be employed in the search for blind deposits. About 300m south of the Blue Spec Fault Zone, an ENE-striking zone of quartz-ankerite?pyrite veining with carbonate-sericite alteration has been identified over about 450m of strike length. The zone will be tested with five shallow RC holes. At Blue Spec East nearby, a program of 14 RC holes will be undertaken to test the potential for shallow mineralisation amenable to open pit mining.