PERTH (miningweekly.com) – Construction has started at ASX-listed Calidus Resources’ Warrawoona gold project, in the Pilbara, with contractor Macmahon Holdings tapped as the preferred mining contractor.
“The commencement of construction activities at Warrawoona is a major milestone for Calidus. Installing the base infrastructure this year will provide a springboard to allow on-ground activities to kick off in earnest in the first quarter of 2021, subject to finalisation of all permits and financing,” said Calidus MD Dave Reeves.
The early construction work will provide the base infrastructure including an access road, accommodation village, communications and water supply.
Meanwhile, Calidus has also selected Macmahon as the preferred mining contractor for the gold project, with the scope of work to include all opencut mining activities, and potentially some early stage civil works.
The opencut mining work is expected to generate some A$220-million in revenue for Macmahon over a 54-month period, with potential underground work also on the cards.
ASX-listed GR Engineering has also been appointed as the preferred tenderer for the design and construction of the process plant and associated infrastructure at Warrawoona, with project activities expected to start in early 2021.
A 2019 prefeasibility study into the Warrawoona project estimated that it would require a capital investment of A$95-million, and would recover some 580 490 oz of gold over an initial six year mine life.
The project hosts a mineral resource of 1.49-million ounces, at 1.06 g/t gold defined over 5 km of strike which remains open in all directions.