Caldera Resources Inc.
TSX : CDR

Caldera Resources Inc.

August 23, 2005 09:00 ET

Caldera Resources Inc.: Discovery At Ellendale East Diamond Project, Western Australia

SOUTH PERTH, WESTERN AUSTRALIA--(CCNMatthews - Aug. 23, 2005) - Caldera Resources Inc. (TSX:CDR)

Highlights

- Numerous microdiamonds have been identified from volcanoclastic quartz tuff drill chip sections.

- Discovery of extensive quartz tuff intersections from July 2005 drill program.

Caldera Resources Inc. (TSX:CDR) is very pleased to announce preliminary results from the recently completed drill program at the Ellendale East Project which is located 30 kilometres from the Ellendale Diamond Mine in the Kimberley region of Western Australia.

The Aircore program tested ten aeromagnetic anomalies for a total of 1004 metres and was completed by Murchison Explorations Service in early July, 2005.

Petrological studies carried out by Dr. Greg Pooley of Perth at the UWA Electron Probe and the CSIRO Scanning Electron Microscope confirm the presence of numerous microdiamonds in three polished thin sections of drill chips from one drill hole. Dr. G. Pooley comments that although a systematic microdiamond analysis has not yet been undertaken, the number of microdiamonds observed during the identification process is noteworthy. The assessment of drill chips from other drill holes is currently being evaluated.

The diamond bearing rock is classified by Dr. G. Pooley as volcanoclastic quartz tuffs which are the predominant source of diamond being mined at the nearby Ellendale Diamond Mine which is operated by Kimberley Diamond Company NL.

Quartz tuff has been recognized at seven of the ten targets drilled and the Company is now planning a follow-up drill program to better define the areal and depth extent of these targets. It is significant to note that the diamonds identified have been recovered from the largest target drilled to date. The Company considers these results to be extremely important and indicates the potential of the Ellendale Lamproite Field.

Representative drill samples from seven drill holes are currently being processed by Diatech Heavy Mineral Services of Perth. The concentrates which contain the +0.3 to - 1.2mm fraction will be examined for diamond and indicator minerals.

The Company will also separately process the +100 to -300 micron fraction for microdiamonds.

Mr. Ronald Winston, Chairman of Harry Winston Inc, has a right to farm-in arrangement on the Ellendale East Project. When Caldera completes the processing of drill material, Mr. Winston may elect to earn a 50% interest in the project by reimbursing the Company A$400,000 and expending A$2Million on further development exploration over 2 years. Mr. Winston may then earn an additional 10% interest by paying Caldera A$1M and expending A$7M over the next three years.

Mr. Winston stated that "I consider that the Ellendale drill results are one of the more significant developments in my diamond exploration career".

The Ellendale Lamproite field is the locality for the Ellendale 9 Mine operated by Kimberley Diamond Company NL. On 12 August 2005, Kimberley Diamond Company announced that approval had been granted for mining of the Ellendale 4 Pipe, which is situated 25 kilometres north-west of the Caldera targets. This expansion project will increase the processing capacity at Ellendale from 2.2 Mtpa to 7.2 Mtpa and will result in an annual increase of production from 120,000 carats to 700,000 carats.

RUNTON DIAMOND PROJECT - WESTERN AUSTRALIA

A drill program which will test three separate magnetic targets is expected to commence in mid-August 2005.

Martin Jackson, a member of the Aus.I.M.M is the qualified person responsible for the technical information in this news release.

Other Activities

Caldera is engaged in diamond exploration in Australia through five projects. Two projects are located in the Pilbara region of northern Western Australia, one of which is joint-ventured with Mr. Ronald Winston of Harry Winston Inc. The Company also has two projects located adjacent to the Ellendale Lamproite Field in the Kimberley region of Western Australia. Both of these projects are also joint-ventured under separate arrangements with Mr. Ronald Winston. One project is located on the Yilgarn Craton of Western Australia which is joint-ventured with SouthernEra Diamonds Inc. (TSX:SDM).

Caldera also has three base metal/gold projects in South Australia. One of these projects is the Mt. Carulina Project which is an Olympic Dam - style base metal/gold target.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Caldera, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Caldera's expectations are exploration risks detailed herein and from time to time in the filings made by Caldera with securities regulations.



Canada

Suite 3100
40 King Street West
Toronto. Ontario. M5H 3Y2
Telephone: 416-865-6605
Facsimile: 416-865-6636
Website: www.calderares.com

Australia

1 Charles Street
Suite 8
South Perth. Western Australia.
6151
Telephone: 011-618-9367-7728
Facsimile: 011-618-9367-7705
E-mail: calderares@bigpond.com


Cusip: 1287D 105


Contact Information

  • Caldera Resources Inc.
    Chris Reindler
    President
    011-618-9367-7728
    011-618-9367-7705 (FAX)