Calidus Resources Limited (ASX: CAI) is making continued strong progress in the construction of its Warrawoona Gold Project in WA’s Pilbara, with the total project now 78% complete.
The project remains on schedule and within budget and first gold production is set for the June quarter of 2022.
Calidus Managing Director Dave Reeves said Warrawoona is well on track to be Australia’s next gold producer.
The focus of the team on site is now swinging from construction to operational readiness with mining and recruiting activities ramping up,” Mr Reeves said.
“The Warrawoona Gold Project remains on time and budget, which is a huge credit to all employees and contractors involved in the construction in what has been a challenging environment.”
Warrawoona is forecast to produce up to 105,000 ozs per annum. This has the potential to increase to 139,000 ozs per annum when the nearby Blue Spec deposit is developed. (Refer to ASX release dated 23 March 2021.)
Construction of the processing plant is now 85% complete, with multiple work fronts continuing as planned, including:
Process Plant
- Crusher, apron feeder and associated conveyors installed
- Ore transfer station and stockpile conveyors substantially installed
- SAG Mill fully installed including motor and mill has been inched (turned)
- Gravity circuits installed
- CIL tanks complete
- Gold room mechanicals including elution columns, elution heaters, carbon regeneration kilns installed
- Reagent tanks and stores substantially complete
- Workshop, stores, processing offices and laboratory installed
- 99% of processing plant structural material is now on site, with focus turning to final electrical and mechanical installations with dry commissioning activities to commence in the March quarter
- Laboratory for grade control samples operational
- All orders for critical spares have been placed
- Orders for first fills (reagents) have been placed
- Dedicated commissioning team in place for the process plant to focus on operational readiness (operating and maintenance) for handover at completion of the Performance tests for the plant
Power Station
- Zenith Energy has mobilised to site to construct the 8MW gas fired Power station
- Civil works complete
- 3 x1 MW gensets arrived and installed for test commissioning power\Oil tanks and transformers installed
Fuel Farm
- Initial 400,000L facility installed and commissioned
- Fuel Farm capacity will be progressively expanded to 1ML facility
Tails Dam
- The tails dam is complete and will provide enough storage for the first three years of operation
- Tailing’s pipeline and return water line are installed Mining
- RC Grade control drilling commenced for ongoing de-risking as pit floor opens up
- Samples being analysed through on-site laboratory which will process all grade control and metallurgical samples
- Day shift mining activities ramping up to 90,000 BCM per month to open up areas for main diggers in March/April 2022
- ROM pad build continuing, crusher backfill complete
- 120t digger has arrived on site to replace 85t digger and ramp up production
- Macmahons mobilisation has commenced for main mining contract, civil works now complete
Personnel
- Recruitment of key positions well advanced with recruitment for all positions for operations commenced
Financing
- Calidus has hedged an additional 20,000 ozs at A$2,450/oz (nett of all costs)
- Total hedge book now stands at 145,000 ozs at A$2,368/oz
- New hedge has facilitated reduction in loan life term from 3.25 years to 3 years thereby reducing total future interest payments
