Calidus Resources: PFS on Warrawoona Gold Project well on track for scheduled completion

Calidus Resources Limited (ASX: CAI) today confirmed that the pre-feasibility study on its Warrawoona Gold Project in WA’s Pilbara is progressing on track for completion in July 2019.

Warrawoona Gold Project is located in the East Pilbara district of Western Australia’s Pilbara Goldfield. Wholly controlled by Calidus Resources, Warrawoona Gold Project has a total Mineral Resource (Indicated and Inferred) of 1.25 million contained ounces.

Commenting on the ongoing pre-feasibility study, Calidus Managing Director Dave Reeves said that all the information gathered so far showed the Warrawoona Gold Project would have a simple layout and processing route.

Image: General Arrangement of Proposed Process Plant (Source: Company’s Report)

He added “The pre-feasibility study is now well advanced and it already shows that Warrawoona is shaping up as a very simple development scenario. The completed mine design on the outcropping Klondyke shear shows a single, 2kmlong continuous pit.”

A single large open pit allows the company to achieve efficiencies and productivities utilising a larger mining fleet, designed to deliver lower unit costs as well as multiple staging opportunities available due to the length of the pit. In addition, the waste dump is immediately adjacent to the pit and has been designed such that is located within the natural relief of the area, minimising rehabilitation requirements and providing a greater aesthetic outlook whereby the waste dump is effectively hidden within the relief.

Image: Klondyke Proposed Open Pit, Waste Dump and Plant Location (Source: Company’s Report)

With a 2km long open pit, Calidus also eyes an opportunity to commence any potential underground early by staging the open pit in a manner that gives early access to an underground position. A combination of open pit and underground mining in parallel is reportedly being investigated, with the objective of adding to the scale and longevity of the project.

The company further confirmed the commencement of preliminary work on underground mine design, below the Klondyke open pit. This involves running stope optimiser software to better understand the geometry of higher-grade potential pay zones. Calidus is also investigating additional satellite deposits, including the high-grade Copenhagen (which hosts a Mineral Resource (Indicated and Inferred) of 0.3Mt at 4.65g/t Au for 39,000 ounces (at a 0.5g/t Au cut-off) on which a mine design has been completed.

Forward Plans

The work planned by the company for the next quarter includes:

  • Continuation of regional exploration drilling across high-priority targets;
  • RC Infill of the existing resource targeting additional ounces for any potential development (including underground);
  • Interpretation of a ground induced polarisation (IP) survey over the Klondyke resource;
  • Geological mapping and sampling of high priority Klondyke extensional and regional targets;
  • Finalisation of all metallurgical test work for the PFS;
  • Completion of environmental baseline surveys which will allow commencement of permitting

CAI stock price has gone up by 4.167% to trade at $0.025 on 15 May 2019 (12:42 PM AEST). Over the past 12 months, the stock has declined by 44.19% including a negative price change of 11.11% recorded in the past three months.


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