Calidus Resources is on track to become Australia’s next gold producer after reaching the halfway point of construction at the Warrawoona project in Western Australia.
The company has begun mining at Warrawoona to ensure it starts production in the June quarter of 2022, with ore being sent to the run-of-mine (ROM) pad.
Warrawoona’s construction activities are funded by a loan from Macquarie Bank, which comprises an $85 million senior secured loan and a $25 million mezzanine debt.
Calidus has completed its first drawdown of $8 million from the senior secured loan after completing the loan agreement’s conditions.
The company has kept construction activities on schedule and in line with its budget.
“We are now more than over 50 percent built and we are well on track for first gold in the June quarter of 2022,” Calidus managing director Dave 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 the first quarter of 2022.”
Calidus has also advanced Warrawoona’s processing plant, which is 53 per cent complete following the installation of a crusher.
Preliminary works to install the SAG mill are now underway at the processing plant.
Calidus is expecting to produce up to 105,000 ounces per year, which has the potential to rise to 139,000 ounces once Calidus’ blue Spec deposit is developed.
According to Calidus, Blue Spec has a 415,000-tonne resource at 16.3 grams of gold per tonne for 219,000 ounces.
Calidus is in the process of completing Blue Spec’s definitive feasibility study which is expected to be completed in the June quarter of 2022.