Calidus steaming ahead toward first Pilbara gold pour

Calidus Resources continues to tick off the check list of the required development works for its planned Warrawoona gold mine in the Pilbara region of Western Australia. It says construction of the processing plant is now 85 per cent complete, with overall progress importantly running on time and on budget. Warrawoona is projected to churn out up to 105,000 ounces of gold annually with production forecast to commence in the first half of 2022.

A plethora of other works required to bring the project to life continues to motor on and the company says the total project is now 78 per cent complete.

Calidus says Warrawoona remains on track to become Australia’s next gold producer.

Calidus Resources Managing Director, Dave Reeves said: “The focus of the team on site is now swinging from construction to operational readiness with mining and recruiting activities ramping up.

The Warrawoona Gold Project remains on time and budget, which is a huge credit to all employees and contractors involved in the construction in what has been a challenging environment.”

A 2020 feasibility study on Warrawoona envisaged an average 90,000 ounces of gold production per annum over eight years from a 702,000 ounce mining inventory.

The study projected a post-tax payback period of only 15 months for a A$120 million capital outlay, based on a gold price of A$2,355 an ounce.

EBITDA was forecast to average A$92 million a year with all-in sustaining costs of A$1,290 an ounce across the life of mine.

An after-tax net present value clocked in at A$245m, with an impressive internal rate of return of 57 per cent also estimated in the study.

Notably, Calidus aspires to boost its production numbers in the future by incorporating gold from its nearby high grade Blue Spec project into the proposed Warrawoona operation.

At Blue Spec, the company has so far defined 219,000 ounces of contained gold grading a sensational 16.3 grams per tonne from its Blue Spec and Gold Spec deposits combined.

It believes Warrawoona could churn out 130,000 ounces of the precious yellow metal each year once the ore from Blue Spec is integrated into the operation.

Production at Warrawoona now appears within arm’s reach for Calidus as it continues to tick off a list of tasks required to pour gold at the venture.

At the processing plant, the crusher, apron feeder and associated conveyors, the gravity circuits, gold room mechanicals and other key bits of infrastructure have now been installed. In total, 99 per cent of processing plant structural material is now on site.

Other key infrastructure for the mining operation is also in place including an access road, accommodation village, tailings dam, crusher, mill and communication network.

Civic works on a power station have also concluded with an eight mega watt gas fired power station set for construction.

Recruitment of key personnel for the mine is also at an advanced stage.

Day shift mining activities are ramping up to clear areas for main diggers, expected on site in early 2022. Main mining contractor, Macmahon Holdings, has also commenced mobilisation.

Calidus’ aspirations to bring Warrawoona to life appear to be nearing the finish line with the West Perth outfit now tantalisingly close to becoming Australia’s newest addition to the mid-tier gold mining club.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au