ASX-listed Calidus Resources is marching towards the start-up of its flagship Warrawoona gold mining project20km from Marble Bar in WA’s north-east Pilbara region after ticking a few more infrastructure and permitting boxes. The latest milestones include the installation of a 65m tall telecommunications tower and pipework to connect a bore field with the process plant site and base camp.
The Perth-based gold hopeful has also received regulatory sign-off on its project management plan from WA’s Department of Mines and Petroleum and now has 10 per cent of its 240-bed accommodation village operational.
With practical completion of the site access road also crossed off on its to-do list, Calidus said its development trajectory remained on track to begin formal mine construction works in the coming quarter.
The company just has to scoop up two more regulatory approvals, being the Mining Proposal and Works Approval, which Calidus’ management expects to receive shortly.
The company commenced infrastructure development activities ahead of the tabling of an initial feasibility study which confirmed strong confidence in the robustness of the project’s economics.
The pace of construction continues to gain momentum. Installation of the key base infrastructure has rapidly advanced and will provide a springboard to allow on-ground activities to kick off in earnest in early 2021.
With the completion of the $110m debt financing announced recently, and the PMP approval, we will now look to conclude all major contracts, and once the final regulatory approvals are obtained, to commence main project construction in the coming quarter.
With funding for mine development captured just last week, the company has placed an order with Citic for the purchase of a SAG mill which will ultimately be transported to site after delivery to Port Hedland in the second half of 2021. Calidus also said orders would be placed before year-end for the Thickener, Jaw Crusher and Aron Feeder.
Calidus said it also plans to execute an Engineering, Procurement and Construction contract, or “EPC” contract with GR Engineering for the construction and commissioning of the processing plant at Warrawoona and select a preferred contractor for its power station needs before year-end.
Warrawoona currently has a total resource of 21.2 million tonnes grading 1.83 g/t for 1.25Moz of contained gold, with the resource trending along a strike length of 5km, according to the PFS Calidus tabled back in July this year.
Whilst a Definitive Feasibility Study is eagerly awaited by the market and due to hit the streets shortly, Calidus has already claimed an ore reserve of 8.9Mt at 1.5 g/t for 418,000 ounces of contained gold with open pit mining of the Klondyke deposit expected to commence as soon as all approvals are in place.
Calidus appears on track to deliver on its promise of being a 100,000 ounce per annum gold producer, joining the chorus line of WA gold hopefuls turning historical mine workings or previously overlooked drill hits into robust 21st-century gold mines.
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