Western Australian-based Calidus Resources is on track to form a joint venture with Canadian explorer Novo Resources for tenements surrounding the Warrawoona gold project in the Pilbara.
Calidus controls the Warrawoona project and has located several other exploration prospects in the area.
Under the joint venture, Calidus will have the right to acquire a 70 per cent interest in the Novo tenements surrounding Warrawoona which cover 184sqkm and include direct extensions to the Klondyke Shear in the East Pilbara region.
Calidus will also have the right to own all gold taken from basement rocks within the Novo tenements and an interest in all their related technical information.
Novo’s tenements will complement Calidus’ strategic focus on the Warrawoona Greenstone Belt and will increase the company’s footprint in the Pilbara.
Calidus managing director Dave Reeves said with the execution of the agreement, the company will control the majority of the highly prospective greenstone belt.
“With drilled mineralisation extending 4km directly to the east of the current resource, highlight prospective drill intercepts in satellite areas and substantial undrilled soil anomalies, the area provides significant upside to the Warrawoona project,” he said.
“Such a transaction benefits both parties by providing critical mass in one area thereby enhancing the potential for development of a standalone operation in the area.
“I look forward to working with Novo as we continue to rapidly advance this enlarged project area.”