Calidus ticks boxes on pathway to production

Calidus Resources said it is on track to deliver a Definitive Feasibility Study for its 1.25Moz Warrawoona gold project near Marble Bar in the Pilbara during the December quarter of this year. 

The company said it is targeting the commencement of development in the first half of 2021 after its pre-feasibility study demonstrated a robust project based on 100,000oz per annum of gold production with an impressive all-in sustaining cost of A$1,159 per ounce.

Management said it had ticked off a number of key milestones during the current quarter, including the appointment of GR Engineering Services to undertake the process plant study.  The company has also selected its preferred comminution circuit after further studies altered the circuit contemplated in the pre-feasibility study.

Open pit and underground resources for the project were updated during 2019 however the company said a new global resource will be released during the June quarter this year to ensure the timing of future underground mining is adequately considered in the DFS.

Calidus also has a tender out for the rebuilding of the accommodation village that it purchased late last year and is currently in ‘storage’ in Marble Bar.  The company also said it is now looking to lock in a specialist debt adviser during the June quarter to source a competitive debt finance partner to facilitate finance arrangements ahead of the project’s start-up.

Calidus Managing Director, David Reeves said: “The Definitive Feasibility Study to support the development of Warrawoona is progressing to plan”.  As part of the DFS process, we are de-risking the operations by choosing conservative approaches to all aspects of the project. This is illustrated by our decision to use a SAG mill and ball mill for grinding to ensure grind size is easily met and providing greater flexibility for treatment of future ore sources.”

“We are also preparing to mobilise drill rigs to site to target the Klondyke Shear at a depth of 500m to 600m below surface. Our geologists are very confident that the system will extend to this level and beyond, which could underpin a long-life mine given that our resource is only drilled to an average of 230m below surface.”

With the coronavirus outbreak making gold a ‘safe haven’, having a DFS on the street right now gives companies like Calidus the opportunity to not only survive but thrive in this new difficult economic cycle as investors flock into the traditionally safe area of gold whilst coronavirus uncertainty reins.

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