Calidus sets the mill in motion in Warrawoona

Calidus Resources has taken another major step in its quest to become Australia’s next gold producer with the start of continuous processing of ore on its Warrawoona Gold Project in the Emerging Pilbara Goldfields in WA.

The company says processing of low-grade ore is underway and will transition to run-of-mine ore over the coming week as operations move to a steady state.

As gold accumulates in the processing circuit, Calidus announced that the first gold pour is expected within the next two weeks.

The latest milestone seamlessly followed the company’s recent report that a fleet of eight 100-tonne trucks are on-site and operational, along with the project’s main excavators which have already amassed 140,000 tonnes of ore from the flat. -ROM form, targeting 200,000 tonnes once operational. .

The company’s projections for Warrawoona include an average “first stage” gold production of 90,000 ounces per year over an initial life of eight years and all-in sustaining costs averaging $1,290. ounce over the life of the mine.

According to Calidus, pre-production capital costs reached $120 million, including contingency and pre-production costs, with Calidus forecasting after-tax cash flow of $447 million, a rate of return internal rate of 69% and a refund after only 13 months. .

Warrawoona’s main 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 contained gold.

Under the multi-stage development plan, production is expected to ramp up with additional feed from the nearby Blue Spec project, located approximately 75 kilometers from Warrawoona.

Blue Spec already has inferred and indicated mineral resources calculated by the previous owners which weigh 415,000 tonnes with an average grade of 16.35 g/t for 219,000 ounces of contained gold. Results from recent drilling will feed into a final feasibility study resource update expected in the coming months.

Calidus sees the contribution of Blue Spec ore propelling production from the Warrawoona Project to nearly 130,000 ounces per year for three years – from Years Four through Six – of the initial eight-year mine life.

Remarkably, despite the Covid pandemic throwing the resource sector into disarray in 2020 and significant supply chain and labor disruptions this year, the company reported that work at Warrawoona went on time and on budget.

The start of continuous processing operations less than five years since our debut on the ASX is a major achievement in the life of Calidus and is the result of outstanding performance by our entire team and contractors.

We look forward to becoming Western Australia’s next gold producer.

As global commodity prices continue to trade erratically due to rising inflation reports in the United States, pandemic-related shutdowns in China and rising global tensions surrounding the Russian invasion of Ukrainian gold remain the market in times of crisis. The price of gold is up more than 4% since the start of 2022, closing just under $2,650 an ounce last week, slightly below all-time highs.

Calidus is now poised to take advantage of the current “perfect storm” conditions enjoyed by gold producers. As the crucibles heat up in Warrawoona in preparation for its first gold pour in the coming weeks and after overcoming a deluge of challenges to deliver the project on time and on budget, Calidus hosted a masterclass on mining development.

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