Calidus has commenced bulk earthworks at the processing plant area
Calidus Resources (ASX: CAI) is pleased to report that site works at its Warrawoona Gold Project in WA’s Pilbara are underway post the receipt of an approved Mining Proposal.
In parallel with this construction activity, Calidus is completing an integration study on its nearby Blue Spec gold deposit. This will assess the economics of mining Blue Spec, which has a JORC Resource of 219,000 ozs at 16.3gpt, and trucking ore to the Warrawoona plant.
Calidus Resources’ Managing Director Dave Reeves, said: “The countdown to production at Warrawoona has now begun.
“Construction of Warrawoona is fully-funded and we are on schedule to pour our first gold as planned in the first half of 2022.
“Our feasibility study shows Warrawoona will generate strong financial returns from a base-case production scenario of ~90,000 ozpa at an AISC of A$1290/oz.
“The inclusion of Blue Spec will enable us to leverage the Warrawoona infrastructure significantly, raising the potential for increased production and financial returns.”
“All long-lead items for Warrawoona have been ordered, with the SAG mill due to land in Port Hedland in late July.”
Calidus has commenced earthworks at the main Processing Plant Area (Figure One) with receipt of the required WA State Department of Mines, Industry Regulation and Safety (DMIRS) and Commonwealth Department of Agriculture Water and Environment (DAWE) Permits.
The only outstanding permit is the Works Approval, administered by Department of Water and Environmental Regulation (DWER) which is also anticipated within the March Quarter.
Calidus had previously received approval for “Early Works” which facilitated construction of the Access Road and Village, and receipt of the above approvals allows Calidus to proceed with the main Project activities.
Activities will now steadily increase on site over the June Quarter to include Tails Dam Construction and preparation for initial Open Pit Pioneer Mining which is scheduled to commence in the September Quarter.
Installation of the 240-person Village continues to progress with sufficient rooms and messing facilities currently available for initial construction and Calidus personnel (Figure Three) . Final handover of the village is expected to occur in April with peak manning requirements for the Project not expected until the December Quarter.
Source: Company Press Release