Calidus Resources has started construction works and named Macmahon Holdings as its preferred mining contractor at the Warrawoona gold project in the Pilbara region of Western Australia.
The Warrawoona gold project has a global resource of 21.3 million tonnes at 1.83 grams per tonne of gold for 1.25 million ounces.
The base infrastructure works at the project include construction of an access road, accommodation village, communications and a water supply.
Calidus managing director Dave Reeves said the base infrastructure would support the commencement of major construction activities next year.
“The commencement of construction activities at Warrawoona is a major milestone for Calidus. Installing the base infrastructure this year will provide a springboard to allow on-ground activities to kick off in earnest in Q1 2021, subject to finalisation of all permits and financing,” he said.
Calidus has also appointed preferred tenderers for the site’s open pit mining contract and processing plant.
Macmahon Holdings has been given preferred tenderer status for open pit mining, and GR Engineering Services was awarded preferred tenderer status for the site’s process plant.
“Both of these companies have exceptional track records in the gold mining industry and we look forward to our journey together in building Warrawoona into a cash generative gold miner in the not too distant future,” Reeves said.
Macmahon’s contract is expected to produce $220 million in revenue over 54 months, and expects to begin works in the first half of 2021.
“We are delighted to be selected by Calidus as the preferred contractor for its Warrawoona gold project and look forward to being part of the successful development of the mine. This work will form a key part of our exposure to Western Australia’s thriving gold sector,” Macmahon chief executive officer and managing director Michael Finnegan said.
Macmahon was also awarded contracts with new mining clients Strandline Resources and Bellevue Gold in Western Australia.
The civil contract with Strandline involves the construction of the site access road along with bulk earthworks at its Coburn mineral sands project, while the underground contract with Bellevue will see Macmahon construct a new portal and refurbish the existing decline at the Bellevue gold mine.
These contracts are expected to provide $30 million in revenue for Macmahon.
GR Engineering managing director Geoff Jones said the company was excited to work alongside Caldius to construction and design the process plant at the Warrawoona gold project.
“GR Engineering is pleased to have been appointed as preferred tenderer by Calidus. We are excited to continue to work with the Calidus management team and look forward to Calidus becoming one of Australia’s newest gold producers,” he said.