GR Engineering Services has confirmed it will complete the design and construction of a gold processing plant for Calidus Resources under a $75.5 million contract.
The 2.4 million tonnes per annum plant is for Calidus’s proposed Warrawoona goldmine, near Marble Bar.
Calidus, which had named GR as preferred tenderer for the works in September last year, expects production to begin in the first half of 2022.
Early works on the $120 million project have finished, with a 240-room accommodation village on track for completion in early April.
Calidus, which had named Macmahon Holdings as the mining contractor for Warrawoona last year, said there were 72 personnel currently on site.
“It is wonderful to see the rapid progress being made at Warrawoona with bulk earthworks now in full flight,” managing director David Reeves said.
“The completion of the accommodation village in early April will allow mobilisation of civil construction crews to commence concrete works as Calidus continues on its transition to gold producer status.”
The Warrawoona project has a global resource of 21.3 million tonnes at a grade of 1.83 grams per tonne of gold for 1.25 million ounces.
It holds a pre-tax net present value of $408 million and is forecast to generate average underlying earnings of $110 million each year, according to a feasibility study released in September.
Average production is estimated to be 90,000 ounces of gold per annum.
Calidus shares closed down 1.15 per cent to trade at 43 cents while GR Engineering closed up 0.4 per cent to $1.29.