THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) declared the pre-feasibility study currently underway at the company’s Warrawoona gold project in the Pilbara region of Western Australia is progressing well and is on track for completion in July.
The company reported that all the information it has gathered so far has demonstrated the Warrawoona project, which has a total Mineral Resource (Indicated and Inferred) of 1.25 million contained ounces, would have a simple layout and processing route.
“The pre-feasibility study is now well advanced and it already shows that Warrawoona is shaping up as a very simple development scenario,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.
“The completed mine design on the outcropping Klondyke shear shows a single, two-kilometre-long continuous pit.
“The process flow sheet that has been locked in results in a very simple primary crush, SAG mill comminution circuit, followed by a gravity gold and conventional carbon-in-leach (CIL) recovery plant.
“This conventional layout will also have the benefit of a modest capital and operating cost to build and operate.
“The tailings are proposed to be thickened and disposed in a valley fill tails dam which will result in a much smaller tails dam embankment being required compared to conventional paddock dams, thereby reducing capital for this component of the study.
“Sustaining capital is also negated as no upstream lifts of walls are required as in the case of paddock dams.
“Exploration drilling for water has now been completed, with good sources of high-quality water identified close to the processing plant.
“The drilling rig has now moved back to regional exploration and I look forward to updating the market on this as results become available.”
The Resources Roadhouse spoke with Calidus Resources managing director Dave Reeves at the recent RIU 2019 Sydney Resources Roundup – WATCH THE INTERVIEW HERE