Calidus Resources Estimates Maiden Resource to underpin Nullagine Restart

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported a maiden JORC 2012 Mineral Resource Estimate (MRE) for the company’s Nullagine gold project in Western Australia.

Calidus Resources has commenced work on a Feasibility Study for the re-start of the Nullagine Mill based on two weeks on, two weeks off campaign milling at the 1.8 million tonnes per annum Golden Eagle mill.

This study is expected to be finished in the coming quarter.

The maiden Nullagine MRE has come in at 6.9 million tonnes at 2.15 grams per tonne gold for 475,114 ounces.

This includes Measured and Indicated Resources of 4.1 million tonnes at 2.33g/t gold for 307,497 ounces, representing 65 per cent of the total Resource.

Calidus explained the Mineral Resource does not incorporate the remnant stockpiles on the run of mine (ROM) pad, where the company is undertaking a drill program to delineate Mineral Resources that will be included in the Feasibility Study and provide an ore source for commissioning.

“We are excited to release an initial Maiden Resources at Nullagine which forms the basis for a Study on the restart of the Golden Eagle mill, which has a nameplate capacity of 1.8 million tonnes per annum, on a campaign basis,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.

“Any production from Nullagine will result in a substantial uplift in Calidus’ overall production profile and provide significant free-cashflow generation as there is no hedging in place on any of these ounces.

“We look forward to releasing a Feasibility Study in the September Quarter 2024 with production targeted to commence no later than Q1 CY25.

“Work continues on the remaining 16 historic resources not included in this release which will provide a substantial uplift to these Resources when complete.”

 

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