Calidus Resources has begun a definitive feasibility study at its Blue Spec gold deposit in Western Australia to increase overall production at the Warrawoona project to 139,000 ounces per year.
The project was initially expected to produce a little over 100,000 ounces per year, but it’s hoped a new high-grade deposit will change that prediction.
Blue Spec is 70 kilometres away from the company’s Warrawoona gold project, within trucking distance, where processing plant and equipment are housed.
Calidus managing director Dave Reeves said Blue Spec could complement Warrawoona very well.
“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,” Reeves said.
“This will in turn strengthen overall economics and financial returns.”
The start of mining at Blue Spec will be subject to Warrawoona construction and commissioning being complete, which Reeves had previously said would occur “in the middle of this year.”
“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,” Reeves said.
A Calidus release stated Blue Spec mine development would occur around six months after Warrawoona had been bedded in.
The Blue Spec mineral resource is 415,000 tonnes at 16.3 grams of gold per tonne for 219,000 ounces of gold.
The definitive feasibility study at Blue Spec was expected to be complete by the June quarter of 2022