Calidus has secured an agreement with Novo Resources to acquire the Blue Spec gold-antimony project in the Pilbara region of Western Australia.
The binding agreement is set at $19.5 million for Blue Spec, which has a resource of 219,000 ounces at 16.3 grams per tonne of gold.
Calidus said the project provides scope to increase the production and mine life of its Warrawoona gold project, and is located within a 70-kilometre trucking distance.
Calidus managing director Dave Reeves said the Blue Spec is one of the highest grade gold deposits in the country.
“The synergistic acquisition of Blue Spec will allow Calidus to look at increasing production using the planned Warrawoona infrastructure,” he said.
“By leveraging our planned sulphide plant and underground mining base at Warrawoona, we intend to undertake study work aiming to significantly reduce costs associated with mining and processing this very high grade deposit, which has the potential to add significant production ounces to Calidus in future years.
“Extensive work has already been completed at Blue Spec, including mining, metallurgical and environmental studies which will allow a rapid progression of the deposit into our Warrawoona mine plan.
“Blue Spec is one of the highest grade gold deposits in Australia and we look forward to reporting on study work and exploration in parallel with the progress being made in construction at Warrawoona,”
Blue Spec has a historical production of around 60 thousand ounces of gold at more than 25 grams per tonne of gold.
The Warrawoona gold project’s existing sulphide plant will be utilised to treat the Blue Spec deposit, and will further Calidus’ aim of establishing a regional gold production hub in the East Pilbara district.
The established joint ore reserves committee (JORC) 2012 of 415,000 tonnes at 16.3 grams of gold, and 1.3 per cent antimony for 219,000 ounces of gold and 5200 tonnes of gold is undergoing review by Calidus.
Major project construction at Blue-Spec is set for early 2021.