The agreement, signed with Gondwana Resources, gives Calidus the right to earn up to 75 per cent of an exploration tenement 75 kilometres from Warrawoona.

The tenement is located immediately along strike from the Blue Spec gold mine that Calidus is looking to acquire.

Deposits at the Blue Spec mine host 219,000 ounces at 16.3 grams per tonne.

Calidus managing director Dave Reeves said the farm-in arrangement with Gondwana provided Calidus with a low-cost consolidation opportunity in an under-explored and highly prospective mineral tenure along strike from the high-grade Gold Spec and Blue Spec deposits.

“This additional ground increases our critical mass around Blue Spec where we envisage a satellite mining operation providing ore to the central Warrawoona processing facility,” he said.

“The Blue Spec shear has been mapped on the tenement, however, there has been no historic drilling. We intend to start exploration next year.”

Less than five kilometres from Blue Spec is the Gondwana project, which is considered prospective for mineralisation similar to that at Blue Spec.

Under the farm-in agreement, Calidus is required to spend at least $500,000 within three years to earn up to 51 per cent interest in the tenement.

The company can increase this further by spending an additional $500,000 in exploration expenditure to earn up to 75 per cent interest within five years.