Calidus turns its attention to funding

Calidus Resources is aiming to secure debt funding for the Warrawoona gold project before the end of the year after a feasibility study confirmed strong project economics (reports MiningNews).
2nd October 2020
Resources Rising Stars

Calidus Resources is aiming to secure debt funding for the Warrawoona gold project before the end of the year after a feasibility study confirmed strong project economics (reports MiningNews).

Total capital costs for the project, near Marble Bar in the Pilbara, were confirmed at A$120 million, comprising $105 million in development costs and $15 million for pre-production mining.

The project will produce an average 90,000 ounces of gold in the first seven years of an eight-year mine life, peaking at 105,000oz in the fifth year.

All-in sustaining costs will average $1290 an ounce.

The production outlook is based on reserves of 547,000oz, which includes a 30% increase in underground reserves to 120,000oz.

Based on a gold price of $2500/oz, Warrawoona has a post-tax net present value of $286 million, at an 8% discount rate, a post‐tax internal rate of return of 69% and has a payback period of just 13 months.

Those figures rise to $386 million, 91% and nine months at a $2800/oz gold price.

Post-tax project cashflow is expected to be $447 million at $2500/oz.

"The feasibility study confirms the significant technical and economic strengths of Warrawoona," Calidus managing director Dave Reeves said.

"The project is set to generate substantial cashflow based on low costs and robust margins and underpinned by extensive reserves in a tier one location.

"The strong results of this study pave the way for us to complete debt funding in the coming quarter and start main construction early next year."

Subscribe to the RRS Weekly Wrap

© 2021 Resources Rising Stars All Rights Reserved