Calidus moving towards 2020 development

Calidus Resources will take its time to de-risk the Warrawoona gold project near Marble Bar in the Pilbara
7th June 2019
CAI

Calidus Resources will take its time to de-risk the Warrawoona gold project near Marble Bar in the Pilbara (reports MiningNews).

The company is planning to release a prefeasibility study next month.

Calidus managing director Dave Reeves told the Resources Rising Stars conference the study was focused on a 2km-long open pit with underground underneath.

The company is envisaging 97% gold recoveries and 60% for gravity gold.

"We're talking quite soft rock so less energy goes in," Reeves said.

"Processing wise, it's as good as it gets."

Reeves noted other start-ups in WA gold had produced less than stellar results, with relatively new producer Gascoyne Resources collapsing on Monday.

Calidus is determined it will get it right when it comes to the Warrawoona development.

"We'll work through the parts of the puzzle," Reeves said.

Reeves said strong management was key, with Calidus' board alone having built six mines between them.

"We certainly have that expertise on the team."

The Warrawoona deposit outcrops at surface, and Reeves said Calidus would trench and carry out grade control before building a mill.

"By the time we come to actually press the button, every stepping stone will be in place," he said.

The plan is to move to development late next year.

Since listing on the ASX two years ago, Calidus has tripled the Warrawoona resource to 1.25 million ounces of gold.

The company is confident that will continue to grow, with regional exploration results released yesterday further supporting that view.

The drilling identified shallow mineralisation up to 5km west of the Klondyke resource.

Results included 4m at 8.87 grams per tonne gold from 48m; 12m at 2.37gpt gold from 52m; and 4m at 5.83gpt gold from 36m.

"With today's announcement, we're on the way to proving a lot of lateral extent to Klondyke," Reeves said.

Calidus has $4.3 million cash and $2.2 million of in-the-money options due to expire this month.

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