PERTH (miningweekly.com) – Gold developer Calidus Resources has finalised a A$210-million mining contract with contractor Macmahon for the Warrawoona gold project, in Western Australia.
The contract involves the development of a new opencut mine, with Macmahon to undertake all opencut mining activities until December 2026. The contractor is expected to employ around 120 personnel at the mine site, and mining equipment will arrive on site in the first quarter of 2022.
The mining contract is in addition to the early stage civil works work currently being undertaken by Macmahon at the Warrawoona mine site.
Calidus on Tuesday reported that construction at Warrawoona was now 60% completed, and first production was on track for the June quarter of 2022.
“Every element of our exploration, development and production strategy is proceeding to plan,” said MD Dave Reeves.
“With only two complete quarters remaining to first gold production, works on site continue at pace on all work fronts. Concrete works are almost complete and the focus has turned to mechanical and structural installation, the highlight being the installation of the mill shell.
“In addition, we are very pleased to have signed the mining services agreement with Macmahon, which will mobilise in the new year to ensure we have sufficient ore stocks available at mill commissioning.”
Warrawoona is expected to produce up to 105 000 oz/y of gold, but it could potentially produce up to 139 000 oz/y when the nearby Blue Spec deposit is developed.