Name of the Project
Warrawoona gold project.

Location
The project is located in Pilbara, in Western Australia.

Project Owner/s
Calidus Resources.

Project Description
A feasibility study has determined that the project will generate strong margins and cash flow.

Gold production is estimated at 658 000 oz over an eight-year life-of-mine, based on current minable inventory.

Total mineral resources are estimated at 43.70-million tonnes grading 1.06 g/t of gold. The feasibility study includes a 30% increase in the underground reserves to 120 000 oz (from June 2020), with total project reserves increasing to 547 000 oz.

The recent acquisition of the high-grade Blue Spec mine provides immediate opportunity to expand production and free cash flow at the Warrawoona gold project. The definitive feasibility study and integration plan will be undertaken during the 2021 calendar year in parallel with Warrawoona construction.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate of 8%, of $408-million and an internal rate of return of 81%, with a payback of 13 months.

Capital Expenditure
The project has a capital cost of $120-million, including contingency and preproduction mining costs.

Planned Start/End Date
Main production is scheduled to start in the March 2021 quarter.

Latest Developments
The final environmental protection agency has been received, with the project on track to be fully permitted by the end of the year.

Early works construction is under way and preferred tenderers have been selected for all major contracts.

Key Contracts, Suppliers and Consultants
Optiro Consultants, Lynn Widenbar and Associates (mineral resource estimate); Rapallo, Biologic, Woodman, Sticks and Stones, Total Heritage, Nyamal Heritage, Bat Call, Graeme Campbell and Associates, Mine Earth, Lloyd George Acoustics (environmental, base line studies and project permitting); Peter O’Bryan and Associates, ATC Williams (geotechnical); ATC Williams (tailings storage facility); Groundwater Resource Management, or GRES (hydrology and hydrogeology); GR Engineering Services (processing plant); GRES, Metallurgy Management Services, Nagrom, ALS, BV (metallurgy and testwork); GRES, Aerodrome Management Services (infrastructure); Intermine Engineering Consultants, Entech and Galt Mining (mining); Macmahon Holdings (openpit mining and tailings dam); GRES (process plant engineering, procurement and construction contract); Rangecon (village install); and Telstra (communication).

Contact Details for Project Information
Calidus Resources, email info@calidus.com.au.