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Calidus consolidates landholding in WA

4th December 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold developer Calidus Resources has entered into a farm-in agreement giving it the right to earn up to a 75% interest in an exploration tenement some 75 km from its Warrawoona gold project, in Western Australia.

The tenement is also located immediately along strike of the Blue Spec gold mine, which Calidus is in the process of acquiring.

“The farm-in arrangement with Godwana Resources provides a low-cost consolidation opportunity in an under-explored and highly prospective mineral tenure along strike from the high grade Gold Spec and Blue Spec deposits,” said Calidus MD Dave Reeves.

“This addition will increase our critical mass around Blue Spec where we envisage a satellite mining operation providing ore to the central Warrawoona processing facility.”

Under the farm-in agreement, Calidus could earn an initial 51% interest by spending $500 000 over a three-year period. The company could increase its stake to 75% by spending a further A$500 000 on exploration within five years of the start of the agreement.

Calidus recently secured A$110-million in debt financing for the development of its Warrawoona gold project, with plant construction now planned for the first quarter of 2021.

A feasibility study estimated that the project would produce an average of 90 000 oz/y over the first seven years, peaking at 105 000 oz/y in the fifth year of operation, with gold production to reach 658 000 oz over the eight-year mine life.

Life-of-mine all-in sustaining costs have been estimated at A$1 290/oz, while the project is expected to generate pre-tax cash flows of A$629-million and average annual earnings before interest, taxes, depreciation and amortization of A$110-million.

Edited by Creamer Media Reporter

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