Calidus starts mining

MINING has officially begun at Calidus Resources’ Warrawoona gold project in Western Australia’s Pilbara region.
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First ore stockpiled at the Warroona fold project in WA's Pilbara region.

Paul Hunt

Senior Journalist: Energy & Commodities

Paul Hunt

The gold mine developer said ore was being delivered to the run-of-mine pad where it would be stockpiled for processing.

First production remains on track for the June quarter of next year.

Calidus managing director Dave Reeves said delivery of first ore to the ROM pad was always an important marker in a project's development.

The processing plant is still under construction, however, the crusher has been installed.

Preliminary works for the semi-autogenous grinding mill are underway.

"As we complete the tailings dam, we will open up the mining area in preparation for the main mining equipment, which is due to arrive in  the first quarter of 2022," Reeves said.

Calidus' strong financial position, thanks to a $110 million loan from Macquarie Bank has helped it make good headway.

That, along with a balance sheet boasting about $27 million and $350,000 worth of stock investments, ensures the company is cashed up as it approaches first ore.

Calidus expects to produce about 105,000 ounces of gold a year from Warrawoona.

However, this could actually be closer to 140,000oz when it develops its Blue Spec deposit and incorporates that into its operations.

The Blue Spec deposit has a JORC resource of 415,000t at 16.3 grams gold per tonne, for 219,0000oz.

Calidus is still in the feasibility study stage of Blue Spec.