Facebook
Twitter
LinkedIn
Instagram
Youtube

Calidus Resources Limited, drilling results highlighting strong outlook

Team Veye | 25 Jan 2021 ASX - CAI
Calidus Resources Limited, drilling results highlighting strong outlook

Calidus Resources Limited (ASX: CAI)

Calidus Resources Limited (ASX: CAI) on 22 January 2021, released its December quarter activities report. It reported the strong progress made at its Warrawoona Gold Project in WA during the Quarter.

Highlights

  • Calidus fully funded to production – Warrawoona Gold Project
  • Calidus secures $110 million debt financing for Warrawoona
  • Project development milestones achieved
  • Purchase of 2.5% Net Smelter Return
  • Blue Spec Gold Project Update
  • Drilling extends known mineralisation at Coronation deposit
  • Calidus identifies 22 high-priority regional targets as it ramps up a strategy to grow 1.5Moz Resource
  • Infill drilling results highlight strong production outlook
  • Drilling confirms historic shallow intercepts at the Otways Prospect
  • Warrawoona production hub strategy advances with farm-in

(Chart source: TradingView)

On 14 January 2021, Calidus reported robust assay results from infill drilling at the Klondyke deposit within its Warrawoona Gold Project.

  • Drilling confirms historic shallow intercepts at the Otways Prospect

On 4 December 2020 Calidus had agreed to farm into a highly prospective tenement 75km from its Warrawoona gold project in the Pilbara. The farm-in agreement gives Calidus the right to earn up to 51% by spending $500,000 over three years and 75% over five years by spending a total of $1m on exploration.

At the end of the quarter, Calidus and its subsidiaries held $41.8m cash and $0.5m in listed investments. (Data Source – Company Reports)

 

Veye’s Take

Infill drilling results have highlighted a strong production outlook at Warrawoona Gold Project. Drilling continued to intersect wide high-grade zones within the planned open pit. These results were well above the current Reserve grade of 1g/t and demonstrate excellent continuity of mineralisation. The formation of the “Pin bar” at the top of the Bollinger signalled a bearish move. The stock remained bearish after the formation of the pin bar. It has now taken support at the lower band of the Bollinger and gaining momentum. RSI and MACD have turned positive supporting the upside potential. The stock appears to be forming an inverse head & shoulder pattern. Above $0.545, it can have the potential of reaching its earlier highs. Veye maintains a "Hold" on “Calidus Resources Limited” at the current price of $0.490

Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.