Site works at Calidus Resources’ Warrawoona Gold Project in the Pilbara region of Western Australia are underway following the receipt of an approved Mining Proposal.
Calidus’ 100 per cent owned Warrawoona Gold Project has a global resource of 43.7 million tonnes at 1.06 grams per tonne (gpt) of gold for 1.5 million ounces (oz).
Calidus has commenced bulk earthworks at the main Processing Plant Area with receipt of the required Department of Mines, Industry Regulation and Safety (DMIRS) and Department of Agriculture Water and Environment (DAWE) Permits.
The only outstanding permit is the Works Approval, administered by the Department of Water and Environmental Regulation (DWER) which is also anticipated within the March Quarter.
The company had previously received approval for early works which facilitated the construction of an 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 nining which is scheduled to begin in the September quarter.
The company advised that installation of the 240-person village continues to progress with sufficient rooms and messing facilities currently available for initial construction and Calidus personnel. Final handover of the village is expected to occur in April.
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,” Mr Reeves commented.
“Our feasibility study shows Warrawoona will generate strong financial returns from a base-case production scenario of approximately 90,000 ozpa at an AISC of A$1290/oz.”
Calidus is also 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 oz at 16.3 gpt, and trucking ore to the Warrawoona plant.