Caldera Resources Inc.

Caldera Resources Inc.

April 10, 2006 12:01 ET

Caldera Resources Inc.: Ellendale East Diamond Project-Western Australia: Ron Winston Exercises Option to Earn a 50% Interest and Further Micro Diamond Recovery

SOUTH PERTH, WESTERN AUSTRALIA--(CCNMatthews - April 10, 2006) - Caldera Resources Inc. (TSX:CDR) advises that Mr. Ron Winston has elected to exercise his option to farm-in on the Ellendale East project.

Under the terms of a joint venture agreement dated August 2004 Mr. Winston will fund A$3 million of exploration expenditure over the next 2 years to earn a 50% interest of the Ellendale East project. In addition Mr Winston will now reimburse the Company A$400,000 for past exploration costs incurred on this project.

Upon earning a 50% interest in the property, Mr. Winston may then elect within 60 days, to earn an additional 10% interest in the property by paying Caldera A$1 million and expending an additional A$7 million on the property over the following 3 year period.

The Company had recently granted Mr Winston a 3 week extension of the time within which he was to make this election to allow a third party to negotiate with both Caldera and Mr Winston for a possible alternate joint-venture arrangement on the Ellendale East Project. These negotiations did not result in an arrangement that all three parties found acceptable.

Mr Winston has previously subscribed for $C400,000 in Caldera common shares in August 2004 and an additional C$300,000 in Caldera common shares in March 2005 as part of the August 2004 agreement.

The Company's immediate exploration plans for the project are an intensive drill program to test the depth and the lateral extent of the targets.

Micro Diamond Recovery

Additional processing of caustic fused drill material from the 2005 drill program has provided one deep yellow microdiamond from a 10.8 kg sample of +100-300 micron, sieved material and a clear microdiamond was recovered from a 3.6 kg sample of +100-300 micron, sieved material. The yellow micro diamond is encouraging, as it is this colour diamond that commands a significant price from the Kimberley Diamond Company NL mines located 30 km to the northwest of the main Caldera target area. These additional results further enhance the view that the Ellendale East Project has significant potential for diamonds at the target area.

Laboratory processing of samples was carried out by Diatech Heavy Mineral Services and Diamond Recovery Services, both of Perth, Western Australia. The caustic fusion was completed by the North Australian Diamond Laboratory. Diamond identification was by Scanning Electron Microscope at C.S.I.R.O., Perth Western Australia.

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, one of which is also joint ventured 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). The SouthernEra tenements also include a joint venture with BHP Billiton Limited on a nickel/platinum project.

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.


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.

Cusip: 1287D 105

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

1 Charles Street
Suite 8
South Perth. Western Australia. 6151
Telephone: 011-618-9367-7728
Facsimile: 011-618-9367-7705

Contact Information

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