Photo by: Calidus Resources
Name of the Project
Warrawoona gold project.
Location
Pilbara, Western Australia.
Project Owner/s
Calidus Resources.
Project Description
The Warrawoona project is a high-margin gold operation, with average gold production estimated at 90 000 oz/y over an initial eight-year mine life.
The project has a global resource of 43.7-million tonnes grading 1.06 g/t gold for 1.5-million ounces.
The project includes a two-million-tonne-a-year conventional carbon-in-leach processing circuit with a single-stage crushing and semiautogenous grinding mill.
Calidus’ acquisition of the high-grade Blue Spec mine provides immediate opportunity to expand production and free cash flow at the project. The proposed expansion could expand production to 130 000 oz/y on construction of a sulphide plant.
The definitive feasibility study and integration plan are being undertaken in parallel with the construction of Warrawoona.
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 A$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
Calidus declared commercial production at Warrawona in January 2023.
Latest Developments
Calidus Resources reported on April 19 that it planned to raise up to A$28-million in a share placement and share purchase plan (SPP) to help fund the expansion of its Warrawoona gold project.
The company has received commitments for the placement of 109.8-million shares, at 21c each from institutional, sophisticated and professional investors, raising an initial A$23-million.
Each participant in the placement will also receive a one-for-two free attaching option, exercisable at 30c each with a 15-month term.
The share placement will be done under Calidus’s existing placement capacity, and as such will not require shareholder approval.
The company’s biggest shareholder Alkane Resources has subscribed for A$2.5-million of the placement shares.
Further, Macmahon Holdings, the contractor at Warrawoona, has elected to convert about A$10.5-million of its existing creditor position into equity at the same price as the placement.
Macmahon has said that the ownership in Calidus will provide upside to improving project performance that is consistent with its intention to leverage opportunities to further integrate with key clients, reinforce its core business and generate increasing shareholder value.
In addition to the share placement, Calidus will also undertake an SPP to raise an additional A$5-million. Under the SPP, eligible shareholders would be invited to subscribe for up to A$30 000 of new shares in the company, also at 21c each.
“Calidus will emerge from this highly successful raising in an enviable position,” MD Dave Reeves has said.
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, and process plant engineering, procurement and construction contract); 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); Rangecon (village install); and Telstra (communication).
Contact Details for Project Information
Calidus Resources, email info@calidus.com.au.