Managing director Dave Reeves described the start of commissioning was a major milestone for the company, which anticipates its first gold pour in about 10 weeks.
He said the construction team’s “outstanding progress” means crushing and milling operations were set to start within the next eight weeks.
The maiden gold pour is expected two weeks later.
The project remains on budget, which Reeves said was an immense achievement given challenging weather conditions and COVID-19-linked challenges.
The tailings dam is complete, the 4.5 megawatt SAG mill is fully installed, piping and electrical installation is nearing completion, and the 9MW diesel backup power station has been fired up.
The majority of the operational workforce has recruited, and most are on site. Contractor McMahon Holdings has commenced moving its trucks.
Reeves said there was 105,000 tonnes of ore stockpile, with plans to reach 200,000t by start-up.
“With first gold now forecast to be less than 10 weeks away, we are about to make the pivotal transition from developer to profitable gold producer,” he said.
Warrawoona stage one aims to produce an average 90,000oz per annum at all-in sustaining costs of A$1290/oz.
“Credit to Calidus, GR Engineering, Macmahon and other contractors for the on-time/on-budget build in the current environment,” Argonaut analyst Royce Haese said.
“Opex next to come under the microscope, the industry has seen substantial increase in labour costs over the last 18 months, so we anticipate an increase on Calidus’ September 2020 forecast $1290/oz LOM AISC, in our view any increase less than circa 30% would be a win.”
Warrawoona’s initial mine life is eight years, however total resources are 1.7Moz, and an expansion to 139,000ozpa has been scoped by bringing in the nearby 219,000oz Blue Spec high-grade deposit, which is subject to a definitive feasibility study.
Blue Spec, which is expected to cost $28 million, will be funded from cashflow.
The company commenced 2022 with about $21 million cash and $27.5 million remaining from its $110 million debt facility and expected to spend $24.6 million to get to first gold.
With commissioning in the final weeks, Calidus is increasing its investment in exploration, both regional gold targets including high-grade gold in quartz reefs at Marble Bar and potential for shallow gold mineralisation at Blue Spec East, and lithium prospects under its overlapping Pirra Lithium 50:50 joint venture with Haoma Mining.
