Caldera Resources Inc.

Caldera Resources Inc.

November 16, 2006 09:18 ET

Caldera Resources Inc.: New Diamond Property Acquisitions

SOUTH PERTH, WESTERN AUSTRALIA--(CCNMatthews - Nov. 16, 2006) - Caldera Resources Inc. (TSX:CDR) is pleased to announce an expansion of its Western Australian diamond exploration projects with the addition of three new acquisitions. All three projects are located in areas Caldera considers prospective for diamond exploration and will extend the company's potential for significant exploration success.

Gulf of Noonkanbah Project- Joint Venture with Nea Kameni Pty Ltd

Nea Kameni Pty Ltd is the owner of Exploration Licence Application 04/1609, which covers 600 square kilometres, lies immediately to the east of the Noonkanbah Lamproite Field, and adjoins the western border of Caldera's Ellendale South Project.

The Ellendale South Project is joint ventured with Kimberley Diamond Company Limited associated company Resource and Investment NL ("R&I").

The Noonkanbah Lamproite Field is comprised of a large number of lamproite intrusions, some of which are known to be diamond bearing. This area however has been subject to extremely limited recent exploration. As with the Ellendale Field, earlier exploration took place in the 1970's and 1980's using techniques that have since been improved upon, particularly with high resolution airborne magnetic surveys. The area covered by the Nea Kameni exploration licence has never been systematically explored for diamonds, and the close proximity to the Ellendale and Noonkanbah Fields make it an interesting and prospective exploration target area.

Under the terms of the joint venture, Caldera will issue 500,000 common shares to Nea Kameni and have agreed to complete a close line spaced airborne magnetic survey over the tenement. The western half of the exploration licence will be flown in December of this year with the remaining area to be flown in the first quarter of 2007.

Subject to the airborne magnetic survey results, Caldera may then elect to earn a 75% interest in the exploration licence by reimbursing Nea Kameni's application costs of A$20,417 and expending a total of A$250,000 on exploration within two years from date of grant of the tenement.

Upon earning its 75% interest, Caldera will issue Nea Kameni a further A$50,000 in Caldera common shares (issued at the price weighted index of the previous five days trading before issue).

Durack South

Caldera will acquire all the shares of Lamb Exploration Pty Ltd for consideration of A$25,000 cash and the issuance of 1,000,000 Caldera common shares. In addition, Caldera is to pay a deferred consideration of a further A$60,000 worth of Caldera common shares provided Caldera continues to explore the Exploration Licence held by Lamb Exploration Pty Ltd for more than 12 months after the granting of the exploration licence. The deferred share consideration will be issued at the price-weighted index of the previous five days trading before issue.

Lamb Exploration Pty Ltd is the owner of Exploration Licence Application 80/3793, which covers 537 kilometres and is located in the Kimberley region of Western Australia. This tenement lies approximately 170 kilometres west of the Argyle Mine, which is the largest diamond producer in Australia.

Previous exploration carried out by other explorers in the early 1990's resulted in the recovery of micro diamonds and chrome spinels from stream sediment sampling. Limited airborne magnetic surveys failed to identify a potential source for the indicator minerals.

Caldera believes that airborne magnetic technology has improved significantly and that a close line spaced survey should identify targets of interest, which can be followed up by ground checking and sampling. Caldera will commence this survey early in 2007.

King Hill Diamond Project

Caldera will acquire the shares of Touareg Pty Ltd for consideration of A$10,000 cash and the issuance of 500,000 common shares of Caldera. In addition, Caldera is to pay a deferred consideration of a further A$50,000 worth of Caldera common shares, provided Caldera continues to explore the exploration licence held by Touareg for more than 12 months after the granting of Touareg's exploration licence. The deferred share consideration will be issued at the price weighted index of the previous five days trading before issue.

Touareg is the owner of Exploration Licence Application 45/2947 which covers 441 square kilometres and lies approximately 40 kilometres north of Caldera's 100% owned Runton project.

The Touareg Exploration Licence Application covers some of the ground previously held by Caldera at the Table Top project. Caldera's technical personnel believe that in light of the ultra basic rock recently identified at the southern dyke in the Runton project, some of the targets previously investigated by Caldera at the Table Top project require further exploration investigation. Exploration results at the Runton southern dyke have given a great deal of insight and geological information as to structural control and events of this region.

R&I Pre-emptive Right

In addition, pursuant to the pre-emptive right granted to R&I as disclosed in the Caldera's press release dated October 18, 2006, R&I has the right to subscribe for 496,879 common shares, being 19.9% of the 2,000,000 shares (the "Further Share Issuances") to be issued for the property transactions referred to above, at an issue price equal to the volume weighted average price of all Caldera shares traded on the Toronto Stock Exchange for five (5) trading days immediately prior to the date of the Further Share Issuances, determined by dividing the aggregate sale price for all shares traded in that five (5) day period by the total number of the shares traded.

All transactions are subject to Toronto Stock Exchange approval.

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 which are joint ventured with Resource and Investment NL, an associated company of Kimberley Diamond Company Limited.

Caldera also has two 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

Contact Information

  • Caldera Resources Inc.
    Chris Reindler
    +61-8-9367-7705 (FAX)
    Caldera Resources Inc.
    Robert Levitt
    Investor Relations
    (514) 242-1852