Shares in Calidus Resources (ASX:CAI) soared 25% Wednesday after the company increased the mineral resource at its Warrawoona gold project in Western Australia's Pilbara region by a whopping 75%.
The new mineral resource estimate now sits at 21.2 million tonnes grading 1.83g/t gold for 1.25 million ounces.
About 64% of the new resources is in the confident indicated category status, with the higher-grade component chiming in at 1.1 million ounces at 2.37g/t gold.
The new mineral resource estimate now sits at 21.2 million tonnes grading 1.83g/t gold for 1.25 million ounces.The increase is a pre-requisite for the pre-feasibility study, which Calidus is targeting for completion in the September quarter.
Calidus said the gold resources at Warrawoona remained open both at depth and along strike, with significant potential existing for further growth in resources in the project area.
Russell Lamming, chief executive of Keras Resources, which own 32.3% of Calidus, said work on the pre-feasibility study was ongoing and due for completion in the third quarter of 2019. Drilling is planned for new prospects to grow the resource further.
"There is obvious opportunity to grow the mineral resource along strike and at depth, plus we will evaluate and test a number of regional prospects in 2019, which have excellent potential to generate shallow ounces that could be included within our overall mineral resource inventory," added Calidus managing director, Dave Reeves.
Calidus closed up A0.3 ?, or 25% in Sydney on Wednesday.