ASX-listed Calidus Resources intends to become Australia’s next gold producer. With “rapid progress” made on several fronts in recent weeks, the company says construction of its Warrawoona gold mine in the Pilbara region of Western Australia is now 40% complete, ensuring it is on track for its first gold pour in the first half of a year.
Calidus says blast hole drilling has started alongside a host of other activities, including construction of the tailings dam, as part of preparations for the imminent start of mining.
The processing plant would also go on schedule, with the crusher and crusher now on site and structural steel deliveries have started.
With the start of drilling and blasthole construction progressing on time and on budget, Calidus can now say with confidence that it will be Australia’s next gold producer. Activity on the site is accelerating as most of the civil works are completed at the processing plant, allowing mechanical and structural assembly to begin in the near future.
The centerpiece of the Warrawoona Klondyke deposit contains proven and probable open pit and underground reserves of 14 million tonnes of ore at an average grade of 1.2 grams per tonne for 521,000 ounces of gold contained.
Klondyke has an aggregate measured, indicated and inferred open pit and underground resource of 42.3 million tonnes of ore grading 1.02 g / t for 1.38 million ounces of gold contained.
Calidus also recently confirmed that a series of diamond drilling at its recently acquired Blue Spec satellite high-grade underground gold deposit will provide enough samples to advance the metallurgical studies required for a definitive feasibility study. The study is expected to be completed in the first half of 2022.
Blue Spec, approximately 70 km from Warrawoona, is home to a remaining inferred and indicated mineral resource of 415,000 tonnes of catchy ore grading 16.35 g / t for 219,000 ounces of gold contained.
The company hopes to increase production at Warrawoona from a planned level of 90,000 ounces per year to an average of 120,000 to 130,000 ounces per year for part of the mine’s initial eight-year life.
Thanks to Blue Spec’s contribution, the pre-tax free cash flow of the Warrawoona Gold Processing Center stands at $ 662 million or $ 82.75 million per year over eight years.
All-inclusive sustaining costs of gold production are expected to remain stable at approximately $ 1,292 per ounce.
In an area that is shaping up to be Washington State’s next premier gold jurisdiction, Calidus owns an impressive 780 km² of land holdings. Exploration to date has identified 95 other targets, 22 of which are considered high priority. Other players in the area include Novo Resources with its Nullagine gold mine just down the road and DeGrey Mining with its multi-million ounce Hemi project which continues to impress the market.
Calidus is in an enviable position as he prepares to produce with gold prices at an all time high.
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