Calidus Resources has jumped on the opportunity to pick up an accommodation village for what looks like a song, signalling that it is getting serious about developing its Warrawoona gold project in the Pilbara.
The Perth ASX-listed company took advantage of compelling commercial terms to snap up a cheap, mobile accommodation village that will support future operations at Warrawoona.
The camp infrastructure has 240 rooms and includes offices and a gym, a laundry and ablution block. The camp infrastructure is being relocated to Marble Bar and it will be stored there until needed. This acquisition will deliver significant capital efficiencies to the company once the green light is given to commence operations.
Calidus has applied for an early works permit to fast track deployment of the camp ahead of receiving final, internal and external development approvals.
Calidus Managing Director, Dave Reeves said: “We are pleased to have secured a high quality and critical piece of infrastructure at a significant discount to the price of a new village.”
“The purchase will allow us to have a fully functioning village that can be brought online prior to any major construction works occurring on site. We will now advance an early works application which will enable us to have the village in place ahead of the full Project Development approval which is anticipated in approximately 12 months’ time.”
“The number of rooms purchased will cater for peak construction workforce personnel and means we can minimise construction timeframes once the required permits and finance is in place.”
The next six to twelve months will be exciting to watch as the company draws closer to a final investment decision to develop Warrawoona.
The project contains a total resource of 1.25Moz of gold within a total of five deposits and is essentially the result of the company managing to pull a number of disparate land owners together to form a commanding combined land position along its greenstone belt.
The pre-feasibility study incorporated initial development plans centred around the Klondyke deposit that has an indicated resource of 795,000oz and can be accessed initially by open pit mining.
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By Matt Birney
