Calidus joins ranks of gold producers
Calidus Resources has defied WA’s tight labour market and cost inflation to bring its Warrawoona gold project in the Pilbara into production (reports The West Australian).
12th May 2022
The Dave Reeves-led company announced on Friday it had poured first gold from Warrawoona near Marble Bar after delivering the $120 million project on time and budget.
Calidus joins the ranks of Australian gold producers less than five years since the company’s debut on the ASX.
Mr Reeves said with production and revenue, Calidus had begun to lay the foundations for ongoing growth.
“Cashflow from Warrawoona will provide opportunities to increase production via the development of our Blue Spec deposit and help fund our highly promising gold and lithium exploration,” he said.
Warrawoona will now ramp-up to full production with mining services company Macmahon under a $210m contract.
Calidus is targeting average annual production of 90,000 ounces per annum over an initial eight years at Warrawoona, but hopes to lift production to 130,000ozpa.
The company also aims to expand Warrawoona’s 1.7Moz resource and minelife through further near-mine and regional exploration.
The company’s first gold pour comes nearly a year after Mark Clark’s Capricorn Resources began production from its $175m Karlawinda project 70km south-east of Newman.
Together with explorer De Grey Mining with its 9Moz Mallina project and celebrated Hemi deposit near Port Hedland, the companies are part of a resurgence of gold exploration and mining in the Pilbara.
Calidus shares fell 3¢, or 3 per cent, to 93¢ on Friday on a soft day for gold miners and a sharply weaker broader market.
But shares in the Alkane Resources-backed company are up more than 40 per cent since the start of the year.
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