Name of the Project
Warrawoona gold project.

Location
Australia.

Project Owner/s
Calidus Resources.

Project Description
An updated prefeasibility study (PFS) has confirmed that Warrawoona will generate strong margins and cash flow that underpins strong financial returns.

The updated PFS includes a 24% increase in reserves to 519 000 oz, including 502 000 oz at the main Klondyke mining area. This underpins forecast production averaging 85 000 oz/y in the first six years, and 90 000 oz in Year 1.

The PFS envisages total gold production of 623 086 oz over an initial eight-year life-of-mine, based on current minable inventory.

Underground production has been deferred until Year 3 and will be derisked through a diamond drill drive ahead of execution, minimising upfront capital requirements.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$423-million and an internal rate of return of 88%, with a payback of 13 months.

Capital Expenditure
Preproduction capital expenditure is estimated at A$116-million, including contingency of A$6-million and preproduction mining costs of $13-million.

Planned Start/End Date
Early works are planned for the final quarter of 2020, with the start of construction scheduled for the March quarter of 2021 to capitalise on the current high gold price and compelling economics of the project.

Latest Developments
Calidus Resources will raise A$25-million to fund construction and early works at its Warrawoona gold project.

The company has reported that it has received firm commitments for the placement of more than 49-million shares, at 51c each, from professional and sophisticated investors.

“This raising ensures Calidus can move quickly to maximise the full value of Warrawoona for shareholders. By pushing ahead with early construction works, we can maximise our ability to capitalise on the strong gold price and begin to generate cash flow,” MD Dave Reeves has said.

“. . . we can ramp up our exploration programme, which has significant potential to create further value.”

Funds raised through the share placement will allow for early works at Warrawoona, including the construction of the access roads, village, water supply and communications, as well as front-end engineering design for long-lead items, while the exploration campaign at the project will also be expanded.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Calidus Resources, tel +61 8 6245 2050 or email info@calidus.com.au.