Calidus Resources has revealed potential to produce around 100,000 ounces of gold a year at the Warrawoona project in the Pilbara region of Western Australia over an initial six-year mine life.
The company’s pre-feasibility study for Warrawoona includes a maiden probable JORC reserve of 418,000 ounces of gold from 8.9 million tonnes of ore (1.5 grams per tonne) at an all-in sustaining cost of $1159 an ounce.
Calidus worked with contractor GR Engineering Services on the PFS, which aided in solidifying the processing plant and infrastructure component of the study.
The PFS focuses on the Klondyke prospect, which has an inferred resource of 20 million tonnes at 1.79 grams per tonne for 1.15 million ounces.
Warrawoona also includes several small satellite deposits with a combined inferred resource of 1.2 million tonnes at 2.53 grams of gold per tonne for 98,000 ounces.
Calidus has taken a conservative approach to the findings as the project moves towards the bankable feasibility study stage.
Managing director Dave Reeves said the PFS and maiden reserve showed that Warrawoona would be a “robust Australian gold project” with substantial potential for growth.
“We will undertake systematic drilling in the next quarter to further improve our knowledge of the orebody as another step in the de-risking process,” Reeves said.
“A subsequent grade control program prior to construction in conjunction with the drilling to a planned measured resource will be applied to both the wider resource model and the feasibility modifying factors.”
Drilling and construction will take place at the project over the next 12 months as Calidus continues to de-risk the project and work towards its final feasibility study.