Calidus Sets Initial Warrawoona Gold Output at 580,490 Ounces

A prefeasibility study estimates that 580,490 ounces of gold will be mined at the asset in its initial six years of life.

Calidus Resources (ASX:CAI,OTC Pink:CALRF) released the results of a prefeasibility study (PFS) for its Warrawoona gold project, estimating that approximately 580,490 ounces of the yellow metal will be recovered over an initial six year mine life.

On Wednesday (July 17), the miner said that the project, which is located in the Pilbara region of Western Australia, will require AU$95 million in capital to advance.

“The maiden reserve and PFS show that Warrawoona will be a robust Australian gold project based on a simple operation with strong margins and cashflow. It also has substantial potential for growth in the mine plan material and mine life, as demonstrated by recent exploration results,” said Dave Reeves, managing director of Calidus.

The pre-tax net present value for Warrawoona is estimated at AU$151 million with an internal rate of return of 40 percent, based on a gold price of AU$1,800 per ounce. The payback period for the asset is set at just over two years at an all-in sustaining cost of AU$1,159 per ounce.

Life-of-mine revenues for Warrawoona are expected to be over AU$1 billion. During that time, C1 costs are estimated to reach AU$607 million, or around AU$51 per tonne.

“We will undertake systematic drilling in the next quarter to further improve our knowledge of the ore body as another step in the de-risking process,” said Reeves. The company will focus on both down-dip and shallow drilling along strike to the east at Warrawoona to allow for increased conversion from resources to reserves.

Reeves also noted that project permitting should take about 12 months. During this time, the miner will continue to finalize a feasibility study, put financing into place and conduct exploration geared at extending Warrawoona’s life.

The Warrawoona gold project has a total resource of 21.3 million tonnes at 1.83 grams per tonne gold for 1.25 million ounces, which includes a higher-grade component of 14.6 million tonnes at 2.37 grams per tonne gold for 1.1 million ounces.

As of 4:23 p.m. EDT on Wednesday, Calidus was trading at AU$0.03.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.

Torian Resources Limited Significant Gold Results from Surface at Mt Stirling

Perth, Australia (ABN Newswire) – Torian Resources Ltd (ASX:TNR) is pleased to advise that recent drilling results continue to extend the Mt Stirling Gold System over ~1.1km of Strike, ~300m at depth, and it remains open in multiple directions.

Highlights:

– The interpreted strike of the Mt Stirling gold system exceeds 1.160km with Mt Stirling Main Zone; Hanging Wall and Viserion lodes all remaining open along strike and down-dip.

Keep reading... Show less

eMetals Limited Updates Shareholders On Exploration – April 12, 2021

eMetals Limited (ASX:EMT) (eMetals or Company) is pleased to update shareholders on exploration activities which have commenced across the Company’s projects.

HIGHLIGHTS

Keep reading... Show less

Discovery Harbour Provides Newcrest’s Planned Program for Fortuity 89, Nevada

Discovery Harbour Resources Corp. (TSXV: DHR) (OTC Pink: DCHRF) (FSE: 4GW) (the “Company” or “Discovery Harbour”) is pleased to announce that Newcrest Resources Inc., a wholly owned subsidiary of Newcrest Mining Limited (“Newcrest”), has provided the details of its planned program for the Fortuity 89 epithermal gold property in Nevada.

The Fortuity 89 property covers very limited outcrop surrounded by a large covered area. The outcrop and interpreted geology are prospective for concealed low sulphidation epithermal gold mineralization below shallow unconsolidated alluvial gravels. Newcrest’s planned activities include a geophysical program encompassing a 675 line kilometre drone airborne magnetic survey, a 250 station ground gravity survey and a 45 line kilometre audio band magnetotellurics (AMT) resistivity survey. It is intended that geologic and alteration sampling and mapping will also be undertaken with a soil geochemical sampling program. The intended outcome of this program is to identify potential drill targets for testing this calendar year.

Keep reading... Show less

Blackdome-Elizabeth Gold Project 2021 Exploration Plan and Update

Tempus Resources Ltd. (“Tempus” or “the Company”) (ASX:TMR)(TSXV:TMRR) is pleased to provide an update on the exploration plan for the upcoming field season at the Blackdome-Elizabeth Gold Project, located in British Columbia, Canada

The 2021 exploration program at Elizabeth and Blackdome is fully permitted and on schedule to commence at the end of Q2, 2021. The program will consist of 7,500 metres of down plunge and along strike diamond drilling at Elizabeth to expand the known gold mineralisation, in parallel with detailed alteration and mapping studies at Blackdome in support of future resource expansion drilling.

Keep reading... Show less

Rio Tinto reaches agreement with Turquoise Hill Resources on financing plan for Oyu Tolgoi

Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the “Funding Plan”) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion 1 , building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.

Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will:

Keep reading... Show less

Top News

Related News