Calidus Resources Limited (ASX:CAI) has poured the first gold at its 100 per cent owned Warrawoona Gold Project located in the Pilbara of Western Australia from the commissioning of the gravity circuit.
The project has now entered the ramp-up phase, with the elution circuit currently commissioning, paving the way for the first bar sourced from the leach circuit to be poured next week.
“Pouring our first gold on time and budget is the culmination of an incredible effort by all employees and contractors involved at Warrawoona,” Managing Director, Dave Reeves, said.
“With production underway and revenue being generated, we have begun to lay the foundations for ongoing growth.
“Cashflow from Warrawoona will provide opportunities to increase production via the development of our Blue Spec deposit and help fund our highly promising gold and lithium exploration.”
Calidus recently commenced continuous ore processing at the Warrawoona, with activities commencing with processing of low-grade ore before transitioning to run-of-mine ore as operations moved to steady state.
With the first gold pour completed, production is now ramping up to ~90,0000oz a year in Stage One.
“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 an outstanding performance by all our team and contractors,” Calidus Managing Director Dave Reeves said.
“Despite the challenges faced in our industry during the Covid pandemic, we are pleased to have delivered Warrawoona on time and on budget.
“As Warrawoona completes successful commissioning and transitions into steady state operations, Calidus is well positioned for future growth and delivering strong shareholder returns.
“We look forward to becoming Western Australia’s next gold producer.”
In it latest Quarterly, Calidus reported that project construction was estimated to be 98% complete with no lost time injuries recorded to date. During the quarter, $20.4 million was incurred on the Warrawoona development with further development expenditure of $3.5 million remaining to first gold production.
Warrawoona is forecast to produce up to 105,000oz per annum. However, this has the potential to increase to 139,000oz per annum 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 (DFS) which is due in the June quarter of 2022.
For further information please visit: https://www.calidus.com.au/
