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Calidus Resources Remains on Track and on Budget For First Gold Pour

THE BOURSE WHSIPERER: Calidus Resources (ASX: CAI) announced commencement of commissioning of the company’s 100 percent owned Warrawoona gold project in the Pilbara of Western Australia.

Calidus Resources reported crushing and milling operations are set to start within the next eight weeks with first gold poured approximately two weeks later. The project remains on budget.

“With first gold now forecast to be less than ten weeks away, we are about to make the pivotal transition from developer to profitable gold producer,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.

“This immense achievement is a credit to all employees and contractors, who have worked tirelessly amid some of the most challenging weather conditions and times our industry has faced.”

 

Dave Reeves speaks with Wally Graham at the recent RIU Explorers Conference in Fremantle.

 

 

 

 

 

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@calidus.com.au

 

Web: www.calidus.com.au

 

 

Calidus Resources Commits to Renewable Micro Grid

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) announced the execution of an agreement with Zenith Pacific for the construction of a 4MW solar farm with 3.5MW battery energy storage system at the company’s Warrawoona gold project in the Pilbara region of Western Australia.

Calidus Resources reported Zenith is currently constructing an 11MW gas fired power station at Warrawoona under a Power Purchase Agreement (PPA).

It went on to explain the construction of the solar farm is part of the PPA whereby Calidus purchases power from Zenith.

The solar farm will be constructed in H2 of CY2022 and will feed into the distribution line between the power station and the project accommodation village.

The decision to proceed with the solar farm and battery storage is in line with the company’s Environmental, Social and Governance (ESG) initiatives.

“Calidus is committed to carbon reduction as part of its ESG policy,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.

“This renewable micro grid is a cornerstone to our carbon reduction plan which includes the use of LNG not diesel and the ability of the LNG gensets to use up to 25 per cent hydrogen.

“We are pleased to extend the relationship with Zenith to incorporate this renewables project, and look forward to its construction in the second half of this year.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@calidus.com.au

Web: www.calidus.com.au

 

Calidus Resources Drilling Blue Spec to Increase Warrawoona Production Rate

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported the start of diamond drilling at the high-grade Blue Spec deposit at the company’s Warrawoona gold project in Western Australia.

Calidus Resources said the drilling was part of its development strategy for Warrawoona with Blue Spec to be integral to the growth of the project’s forecast production rate, with the deposit being located within trucking distance of the project.

The company believes Blue Spec to hold potential to increase production to a peak of 139,000 ounces per annum compared with the 105,000 ounces per annum contained in the Warrawoona Feasibility Study released in March this year.

“This new drilling program is an important step in our growth strategy,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.

“Blue Spec has the potential to underpin a significant increase in the production rate at Warrawoona while enabling us to leverage off infrastructure which will already be in place.

“This will in turn further strengthen the overall economics and financial returns.

“Our strategy is to finalise the Blue Spec feasibility study so we can bring it into the production plan as soon as practical once operations at Warrawoona have been bedded down.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@calidus.com.au

 

Web: www.calidus.com.au

 

Calidus Resources Poised for Pilbara Gold Production

THE CONFERENCE CALLER: Those looking to quell any doubts regarding the potential of Western Australia’s Pilbara region as a future major gold producing hub should look no further than the example being set by Calidus Resources (ASX: CAI) at its emerging Warrawoona project. By Mark Fraser

While a lot of the oxygen in the small end of town gold space is currently being sucked up by the success of WA-based explorer De Grey Mining (ASX: DEG), Calidus has diligently been working its way towards becoming a producer by the first half of 2022.

The company is currently on the path to establishing a $120 million operation with an average production of 90,000 ounces per annum at a life-of-mine all-in sustainable cost of $1,290 per ounce over an initial eight year (and three month) life.

During this time Calidus is planning to mine 17.6 million tonnes grading 1.24 grams per tonne for 702,000oz (with the recovered gold content being 658,277oz).

Meanwhile, the scheduled ore processing rate is 2.4Mtpa (oxides) and 2Mtpa (fresh material) with the average life-of-mine recovery being 94.4%.

The key feasibility outputs, at a gold price of $2,500 per ounce, include an EBITDA of $110 million a year, a post-tax project free cashflow of $447 million, a post IRR of 69%, a post-tax NPV of $286 million and a payback period of 13 months.

Warrawoona currently has ore reserves of 14.3Mt grading 1.2 grams per tonne for 547,000oz, while the company’s total resource inventory sits at 43.7Mt grading 1.06 grams per tonne for 1.5 million oz.

During the 20th RIU Explorers Conference in Fremantle, Calidus managing director Dave Reeves said later this quarter the company planned to release an integration study on the Blue Spec deposit – a super high grade resource containing 219,000oz grading 16.3 grams per tonne – with the intention of bringing it into the current mine plan and increasing production “significantly on an annual basis”.

Located about 70km to the south-south east of Warrawoona, Blue Spec covers a strike length of 8km and remains open down-dip and along strike.

Made up of two ore bodies that is separated along strike by 1km, Blue Spec was mined in the 1970s.

“It is an ore body that requires flotation – we will have a little flotation circuit to the side of Warrawoona, so we will produce gravity gold, a flotation concentrate, and we will then also put the tails through the CIL,” Reeves explained.

“So, we will get about 20-25 per cent of the gold through the Warrawoona gold plant and 75 per cent through concentrate sales – (there is) a very simple circuit in that and one we see as very low risk.

“The scoping study will be out this quarter, the DFS (will be) out around the first gold pour so that when things settle down at Warrawoona we can press the button on this and bring it in as quickly as we can, because you don’t often get 16 gram ore bodies – in fact I think it is the first one I have been involved with, so it has been an absolute pleasure.”

Main construction is set to begin this quarter. Early site works – including the installation of an accommodation village, water bores, communications and access roads – have been completed.

Reeves said he “couldn’t agree more” that the Pilbara was the place to be for an emerging gold producer.

“If you have a look, yesterday Novo (Resources – TSX: NVO) poured their first bar of gold from their Beatons Creek operation at Nullagine to the south east of us, Capricorn (Metals – ASX: CMM) will be pouring gold to the south of Newman later this year, we will be pouring gold early next year, so it is certainly an epicentre of gold development in WA,” he said.

“De Grey is obviously out there kicking goals, and there are a lot of other deposits as well.”

“So it’s a fantastic place to be from the gold perspective.”

 

Calidus Resources Consolidates Warrawoona Land Position

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) has entered into a Farm-in Agreement with Nimble Resources, giving it the right to earn up to 90 per cent of a highly promising tenement (E46/1035) located about 75 kilometres from the company’s 1.5 million ounce Warrawoona gold project in Western Australia.

The tenement in question is located along strike of two geochemical trends identified on tenements immediately to the west.

“The farm-in agreement with Nimble provides Calidus with another low-cost opportunity to consolidate the company’s land position in a highly prospective region,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.

“The Nimble ground provides Calidus with the potential to add greenfields projects to the Blue Spec satellite mining operation that will provide ore to the central Warrawoona processing facility.

“Many soil and rock-chip anomalies on the tenement have not been previously followed up with drilling.

“Fieldwork will start in earnest this calendar year.”

Under the terms of Farm-in, Calidus can at its election:

Stage 1: Earn a 25% interest with an initial minimum exploration expenditure of $75,000 within 1 year from the commencement date.

Stages 2-4: Earn a 50% interest (Stage 2 Earn In) with a further $125,000 of exploration expenditure within 2 years of the commencement date.

Stage 3: Earn a 75% interest (Stage 3 Earn In) with an additional $300,000 of exploration expenditure within 4 years of the commencement date.

Stage 4: Earn a 90% interest (Stage 4 Earn In) with a further $300,000 of exploration expenditure within 6 years of the commencement date.

Nimble will retain Alluvial Rights on the tenement.

Standard CPs apply including the extension of the term of the tenement until 2025.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@calidus.com.au

Web: www.calidus.com.au

 

Calidus Completes Farm-in to Enhance Warrawoona Production Hub Strategy

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) completed a busy week with the announcement of a Farm-in Agreement with Gondwana Resources.

The Farm-I deal provides Calidus the right to earn up to 75 per cent of a promising exploration tenement (E46/1026) located just 75 kilometres from the company’s Warrawoona gold project in Western Australia.

The tenement is also located immediately along strike of the Blue Spec gold mine which is currently in the process of being acquired by Calidus.

“The farm-in arrangement with Gondwana provides Calidus with a low-cost consolidation opportunity in an underexplored and highly prospective mineral tenure along strike from the high-grade Gold Spec and Blue Spec deposits,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.

“This additional ground increases our critical mass around Blue Spec where we envisage a satellite mining operation providing ore to the central Warrawoona processing facility.

“The Blue Spec shear has been mapped on the tenement, however, there has been no historic drilling.

“We intend to start exploration next year.”

Under the Farm-in, Calidus can:

Stage 1: Earn up to 51 per cent interest with an initial minimum exploration expenditure commitment of $500,000 within 3 years from the commencement date.

Stage 2: Earn up to 75 per cent interest with a further $500,000 exploration expenditure commitment within 5 years of the commencement date.

If either party dilutes their interest to below 10 per cent the interest will automatically revert to a net smelter royalty of 1.5 per cent.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@calidus.com.au

 

Web: www.calidus.com.au

 

Calidus Resources Extends Coronation Deposit Mineralisation

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) has extended the strike length of the known mineralisation at the company’s Coronation deposit in the Pilbara region of Western Australia.

Calidus Resources completed the latest drilling as part of a two-pronged strategy it is implementing looking to create value through exploration at the same time as developing its Warrawoona gold project.

Latest results include:

20CRRC041
14 metres at 3.77 grams per tonne gold from 52m;

20CRRC058
6m at 2.15g/t gold from 30m;

20CRRC050
3m at 4g/t gold from 54m;

20CRRC030
3m at 2.91g/t gold from 36m;

20CRRC027
5m at 1.59g/t gold from 22m;

20CRRC060
4m at 1.85g/t gold from 2m; and

20CRRC039
2m at 3.08g/t gold from 76m.

“Coronation is just eight kilometres from Warrawoona and is emerging as a potential satellite ore source,” Calidus Resources managing director Reeves said in the company’s ASX announcement.

“The infill drilling at Coronation has effectively doubled the strike length of the resource envelope, with mineralisation now traced over 800 metres length and to a depth of up to 150 metres.

“The deposit is open to the south-east and at depth, so that gives us further confidence of additional exploration success and the possibility of adding the first of many satellite deposits to feed into the Warrawoona development which could potentially extend mine life and increase production.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@calidus.com.au

 

Web: www.calidus.com.au

 

Calidus Confirms Otways Historic Drilling

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) released results from the first reconnaissance drilling program completed at the company’s recently acquired Otways project in the Pilbara region of Western Australia.

Calidus Resources recently entered into a Heads of Agreement with Rugby Mining to earn up to 70 per cent interest in the project located north-east of Nullagine.

The company received assays for five RC holes and one diamond hole at the Otways prospect, returning broad zones of copper mineralisation and confirming historic intercepts.

Best intercepts include:

20OTRC002
43 metres at 0.7 per cent copper, including 10m at 1.64 per cent copper from 0-43m;

20OTRC003
18m at 0.33 per cent copper from 18-36m;

20OTRC003
13m at 0.35 per cent copper from 60-73m;

20OTRC001
53m at 0.17 per cent copper from 0-53m;

20OTRC004
11m at 0.47 per cent copper from 92-103m; and

20OTDD001
11.25m at 0.42 per cent copper from 71-82.25m.

Calidus explained the drilling campaign was part of the company’s two-pronged strategy of creating value through exploration at the same time as developing its Warrawoona gold project, also in the Pilbara.

“The reconnaissance drilling at Otways has defined a thick blanket of copper mineralisation from surface which is increasing in grade to the south and west,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This coincides with historical work which outlined a soil geochemical anomaly extending another 1.5 kilometres to the south-west.

“Next year we plan to step out drilling to the west and south to test whether this grade improves under the soil anomaly.

“We can then review results to ascertain how best to unlock value for Calidus shareholders from this deposit whilst we commence exploration on the largely untested broader Otways tenements.

“This is in line with our twin strategy of developing the 1.5 million ounces Warrawoona gold project next year whilst continuing to explore a number of organic growth opportunities to generate value from our broader portfolio.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@calidus.com.au

 

Web: www.calidus.com.au

 

THE DAILY ROADHOUSE

 

Pioneer Resources Estimates Initial Inferred Mineral Resource for Cade Spodumene Deposit

THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) declared it has completed sufficient exploration to estimate an initial Inferred Mineral Resource for the Cade spodumene deposit within the company’s 100 per cent-owned Pioneer Dome project in Western Australia.

Calidus Resources Drilling Underpins Open Pit Resource Upgrade

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported the final batch of RC drilling results from inside the planned Klondyke pit at the company’s 1.25 million-ounce Warrawoona gold project in Western Australia.

Pantoro Confirms High-Grade Mineralisation at Gladstone-Everlasting

THE DRILL SERGEANT: Pantoro Limited (ASX: PNR) released initial drilling results from the Gladstone-Everlasting deposit (Gladstone) at the company’s 50 per cent-owned Norseman gold project in Western Australia.

Cassini Resources and OZ Minerals Expand WMP Tenure

THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) announced an extension to exploration tenure at the West Musgrave Project (WMP), a Joint Venture with OZ Minerals Limited (ASX: OZL) in Western Australia.

Carawine Resources Drilling at Victorian Gold-Copper Project Deposit

THE DRILL SERGEANT: Carawine Resources (ASX: CWX) has commenced diamond drilling at the company’s 100 per cent-owned Jamieson project in northeast Victoria that hosts the Hill 800 and Rhyolite Creek prospects.

Ardea Resources Set to Drill at Mulga Plum Gold Deposit

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) reported that rock chip sampling of old workings spoil and sporadic outcrop at the company’s Mulga Plum gold prospect in Western Australia has confirmed gold mineralisation over an area of at least 200 square metres.

 

Calidus Resources Drilling Underpins Open Pit Resource Upgrade

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported the final batch of RC drilling results from inside the planned Klondyke pit at the company’s 1.25 million-ounce Warrawoona gold project in Western Australia.

Calidus Resources claimed the latest results have provided additional support of the strong grade continuity of gold mineralisation along-strike and down-dip of the planned Klondyke pit.

RC drilling inside the planned Klondyke pit has been designed to upgrade the Resource from Indicated to Measured status and will form part of the Definitive Feasibility Study (DFS) that is currently underway.

The recent activity returned more encouraging intersections, including:

19KLRC288
15 metres at 3.7 grams per tonne gold from 30m;

19KLRC284
12m at 3.93g/t gold from 19m;

19KLRC306
11m at 3.41g/t gold from surface; and

19KLRC283
12m at 3.05g/t gold from 43m.

“With all results now received for the upgrade to a Measured Resource, we have ticked another box in the de-risking and advancement of the Warrawoona gold project,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“We will now commence a review of the open pit resource model, including further optimisation.

“This will form the basis of the open pit resource upgrade targeting the March quarter of next year.

“In addition, we have received results of drilling to the east of the proposed Klondyke pit, where we have intersected some high priority areas for follow up infill drilling.”

Calidus completed an infill RC drill program to the east of the planned Klondyke pit that also returned healthy intersections, including:

19KLRC523
14m at 3.38 grams per tonne gold from 67m;

19KLRC500
5m at 6.69g/t gold from 62m; and

19KLRC522
13m at 2.18g/t gold from 31m.

Calidus has now completed all drilling it had programmed for this year’s field season with a diamond rig having completed metallurgical and geotechnical holes for the DFS.

A geophysical drillhole density logging program is underway and due for completion early December.

The company has the acquisition of detailed airborne magnetic, radiometric and digital terrain data across the tenement package is proposed for completion by mid-December.

It will now commence updating of the open pit geological model now drilling is completed.

 

Email: info@calidus.com.au

Web: www.calidus.com.au