Calidus Resources Limited (ASX:CAI) has achieved another key construction milestone, with mining underway at its Warrawoona Gold Project in the East Pilbara, WA.
Ore is now being delivered to the Run of Mine (ROM) pad, ensuring the project remains on schedule for production in the June quarter of next year. There has also been more strong progress at the processing plant, with the crusher successfully installed.
The plant is now 53% complete, with preliminary works for the SAG mill installation well underway. This is being funded by a loan from Macquarie Bank that was divided into a Facility A Senior Secured Loan of $85M and a Facility B of $25M Mezzanine Debt.
Facility B has been fully drawn and Facility A has now had $8M drawn after the successful completion of all remaining conditions precedent under the Facility Agreement.
Calidus Managing Director Dave Reeves said construction at Warrawoona was proceeding to plan in every respect. “We are now more than over 50% built and we are well on track for first gold in the June quarter of 2022,” Mr Reeves said.
“Delivery of first ore to the ROM pad is always an important marker in a project’s development and confirms we are on track to be Australia’s next gold producer. “As we complete the tailings dam, will we open up the mining area in preparation for the main mining equipment, which is due to arrive in Q1 2022.”
Warrawoona is forecast to produce up to 105,000oz a year (see ASX release dated 23 March 2021). However, this has the potential to increase to 139,000 when the nearby Blue Spec deposit is developed. Blue Spec has a JORC Resource of 415,000t at 16.3gpt for 219,000oz and is now the subject of a Definitive Feasibility Study which is due in the June quarter of 2022.
