Calidus Resources has boosted its production expectations at the Warrawoona gold project in Western Australia following the acquisition of the Blue Spec gold project.
A 23 per cent production increase on the original feasibility study positioned Calidus’ output to peak at 139,000 ounces per year, just in time for site works to commence last March.
The Blue Spec project, 70 kilometres from Warrawoona, has increased the project’s gold production to 807,000 ounces over eight years, with an all-in sustaining cost of $1292 per ounce.
Calidus will take advantage of the existing road between Warrawoona and Blue Spec to truck the ore from Blue Spec to the former for processing.
This will avoid the need for a second village or additional infrastructure to be constructed at Blue Spec.
Construction of Warrawoona’s 240 person village, meanwhile, is complete, with Macmahon fully mobilised for earthworks on schedule.
GR Engineering Services was also contracted during the quarter and continued to construct the Warrawoona process plant.
On the rapid development at Warrawoona, Calidus managing director Dave Reeves said in March that all 72 workers on site were working hard to reach first gold production.
“It is wonderful to see the rapid progress being made at Warrawoona with bulk earthworks now in full flight,” he said at the time.
“With the recent purchase of the Blue Spec project and with geologists back in the field, we are working on all fronts to pour first gold and then expand production and mine life.”
The final outstanding permit is the Works Approval, which Calidus expects will be approved by the Western Australian Department of Water and Environmental Regulation this month.