Calidus ready to ramp up construction

Calidus Resources is just about to launch into full construction of the A$116 million Warrawoona gold project in the Pilbara region of Western Australia (reports MiningNews).
26th March 2021
Resources Rising Stars

Calidus Resources is just about to launch into full construction of the A$116 million Warrawoona gold project in the Pilbara region of Western Australia (reports MiningNews).

Early works at the site, including the accommodation village, water bores, communications and access roads, are almost complete, allowing full-scale construction to kick off in April.

"The site's starting to look really good at the moment," Calidus managing director Dave Reeves told the Australian Energy & Minerals Investor Conference yesterday.

"Things are going to get really real and start to progress quickly."

The Calidus team has been beefed up from five people at the start of the year to 23 people, who are busy working their way through 1298 line items, including the remaining permits.

First gold from Warrawoona is targeted for about this time next year.

The mine, once operational, is set to produce an average 90,000 ounces of gold per annum over eight years, at all-in sustaining costs of $1290 an ounce.

The company sees an opportunity to increase production via the recent acquisition of the nearby Blue Spec deposit.

Blue Spec has a resource of 219,000oz at 16.35 grams per tonne gold.

"It's not every day you get a 16 gram orebody," Reeves said.

A scoping study on the integration of the Blue Spec deposit in the Warrawoona mine plan is due later this month.

"I think everyone's going to be pretty happy when they see what this adds to Warrawoona in terms of ounces and cashflow," Reeves said.

A definitive feasibility study is being targeted for completion before the first gold pour from Warrawoona.

Reeves said the Pilbara had been unloved and forgotten as a gold destination, but it was a hive of activity.

Novo Resources just achieved first production from Beaton's Creek at Nullagine, while Capricorn Metals is close to the first gold pour at Karlawinda, near Newman.

There's also De Grey Mining's Hemi discovery, south of Port Hedland, where Argonaut Securities has suggested the mid-year maiden resource could come in at as much as 5 million ounces.

"The Pilbara is a really good place to be," Reeves said.

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