Mineral resource company Keras Resources confirmed a drilling update published by Calidus Resources on Thursday, reporting that a further 12 reverse circulation holes have been completed along a reconnaissance traverse directly east of the Klondyke Gold Deposit, which is part of the Warrawoona Gold Project located in the Pilbara of Western Australia.
The AIM-traded firm said Calidus would be starting a large resource infill and extension programme across the Klondyke Shear corridor in May.
Keras is a significant shareholder of Calidus, with a current interest of 458 million shares, representing 35.8% of Calidus' total issued share capital.
On successful completion of a pre-feasibility study at Warrawoona, an additional 265 million performance shares
owned by Keras would be converted to ordinary shares.
Keras said the latest 12 RC broad-spaced reconnaissance holes showed that the dominant Klondyke Main mineralised shear structure extended 2 kilometres to the east of the existing JORC-compliant mineral resource estimate.
Detailed field mapping and pXRF sampling had been completed to allow infill and further extensional drilling to start in May, the board explained, and had highlighted the fact that similar geology continued for a further 2 kilometres east of that drilling.
A project-wide regional soil geochemistry programme was also underway, with Keras also confirming that deep drilling at Klondyke had begun, with the first hole nearing its target depth at 500 metres.
"These latest drill results continue to highlight the excellent expansion potential that exists at Klondyke," said Keras chief executive Russell Lamming.
"Having already defined a JORC compliant mineral resource estimate of 9.9Mt at 2.06g/t Au for 654,000 ounces from a 2.6km long strike, the identification of continuing mineralisation across a further 2 km is very positive and highlights the project's significant scale."
Lamming said that, with grades of up to 5.44g/t Au returned and what appeared to be an extensive mineralised shear structure, all results underpinned Keras' belief that Klondyke hosted a "substantial" gold system.
"We look forward to the results of Calidus' upcoming drill programme as they aim to further unlock this potential, building both the value of the Project and the value of our interest in the project."