Calidus at high on high-grade buy

Calidus Resources has agreed to acquire Novo Resources Corp’s Blue Spec gold-antimony project for A$19.5 million cash (reports MiningNews).
25th September 2020
Resources Rising Stars

Calidus Resources has agreed to acquire Novo Resources Corp’s Blue Spec gold-antimony project for A$19.5 million cash (reports MiningNews).

The project, which has a historical resource of 219,000 ounces at 16.3 grams per tonne gold, is only 70km from Calidus' Warrawoona project, where early construction work started last week.

The company is already reviewing the resource to upgrade it to JORC 2012.

Blue Spec has shaft and decline infrastructure and was mined to 320m vertical depth, producing about 60,000oz of gold at over 25gpt.

The deposit has the potential to provide high-grade satellite feed to Warrawoona.

"The synergistic acquisition of Blue Spec will allow Calidus to look at increasing production using the planned Warrawoona infrastructure," Calidus managing director Dave Reeves said.

"By leveraging our planned sulphide plant and underground mining base at Warrawoona, we intend to undertake study work aiming to significantly reduce costs associated with mining and processing this very high-grade deposit, which has the potential to add significant production ounces to Calidus in future years."

Warrawoona is set to produce 85,000oz per annum in the first six years at all-in sustaining costs of $1251 per ounce.

A definitive feasibility study is due in the December quarter ahead of financing and the start of full construction in the early 2021.

Early works at Warrawoona started last week.

Read more at https://www.miningnews.net/m-a/news/1395458/calidus-at-high-on-high-grade-buy

 

Image: Calidus Resources 

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