29/06/2020 - 15:19

WA explorers progress gold projects

29/06/2020 - 15:19

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Calidus Resources says it will begin construction for its Pilbara gold project in six months, while Kin Mining and Moho Resources have moved ahead with drill programs for other projects in Western Australia.

WA explorers progress gold projects
Calidus will begin construction at the Warrawoona gold project in six months. Photo: Calidus

Calidus Resources says it will begin construction for its Pilbara gold project in six months, while Kin Mining and Moho Resources have moved ahead with drill programs for other projects in Western Australia.

West Perth-based Calidus said pre-feasibility study results for its Warrawoona project had revealed a 24 per cent rise in reserves to 519,000 ounces, supporting a forecast production averaging 85,000oz per year in the first six years.

That includes 90,000oz in the first year of production, at an average all-in sustaining cost (AISC) of $1,251/oz.

Pre-production capital costs of the project are $116 million, including contingency of $6 million and pre-production mining costs of $13 million.

The Warrawoona project has a net present value of $303 million, with an internal rate of return of 77 per cent.

Managing director David Reeves said the updated pre-feasibility study highlighted “suburb cash potential” for Warrawoona.

“Risk minimisation is a fundamental theme of all work at Calidus,” he said.

“As such, we have altered the resource modelling technique to a more conservative method, we have delayed the underground to allow the company to focus on a single open pit operation initially and we are including a more flexible comminution circuit.

“The decisions being made ahead of development mean that targets laid out for the operating project have maximum probability of being met or exceeded.”

Mr Reeves said changes associated with costs and mining schedules are anticipated for a definitive feasibility study, which is underway and on track for completion in the current quarter.

Calidus closed up 5.9 per cent to trade at 54 cents per share.

Moho Resources was also trading higher today, with company shares up by as much as 31 per cent after announcing a third reverse circulation drill program at the Cardinia gold project in Leonora.

West Perth-based Moho has signed an agreement with Blue Spec Drilling, which will drill 40 holes for around 3,500 metres of reverse circulation drilling at the Silver Swan North project in Kalgoorlie.

Moho is aiming to infill and extend gold mineralisation at the East Sampson Dam gold prospect, intersected by the company in 2018.

The first phase of the RC drill results will be announced in August, Moho said.

The company closed up 25 per cent to trade at 10 cents per share.

Meanwhile, Kin Mining is using funds raised from a $9.9 million rights issue completed earlier this month to begin the third phase of its drill program at the Cardinia gold project in Leonora.

A 1,200m program of RC drilling is currently underway, Kin said, where previous drilling had returned consistent high-grade, near-surface gold mineralisation.

Managing director Andrew Munckton said the exploration program conducted over the past six months showed strong potential to expand the project’s existing 945,000oz mineral resource estimate.

He said the resource update is expected to be delivered later in the year.

Kin shares closed up 4.5 per cent to trade at 12 cents per share.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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