Calidus Resources (ASX:CAI) has delivered a maiden ore reserve and ‘exceptional’ Prefeasibility Study (PFS) for its Bulletin deposit Bamboo Creek Joint Venture (JV) Project in Western Australia.
The $95 million market capitalisation company says the ore reserve, which shits at 600,000 tonnes @ 2.86 grams per tonne gold for 55,000 ounces of contained gold, includes open-pit inferred resources of 100,000 tonnes @ 2.55g/t Au for 8,000 ounces of contained gold.
This reserve has formed the basis for the PFS, underscored by ‘low upfront capex’ and ‘high-margin’ gold production set to commence later in 2024.
While the company has not published a specific forecast production figure for Bulletin in yesterday’s (22 February) PFS, Calidus predicts a 2-year mine life for the deposit with all-in sustaining costs (AISC) of $1,730 per ounce and upfront capital, including pre-strip costs, of $17 million.
Calidus says the production from Bulletin is set to drive an increase in the production profile of its flagship Warrawoona Project, also in Western Australia, by feeding higher-grade ore to the project.
Further, the mineralisation at Bulletin remains open at depth, highlighting the potential scope to extend production from the open pit and commence underground mining.
Calidus Managing Director Dave Reeves says the ore reserve and PFS confirm that the Bulletin deposit will be ‘significant’ in driving production growth and increasing cashflow generation for the wider Warrawoona project.
“With mining of Blue Bar well advanced, we see the introduction of Bulletin’s higher-grade ore to supplement the existing ore from the Klondyke open-pit as a pivotal turning point in Calidus’ ambitions to achieve a 100,000-ounce-per-annum production rate at the Warrawoona Gold Project.”
In light of the ‘strong’ Bulletin PFS outcome, Calidus has now prioritised this area for development.
The Bulletin deposit lies within the Bamboo Creek historical mining centre, which Calidus says previously produced 220,000 ounces @ 8.7g/t Au. Bamboo Creek forms part of Calidus’ 60/40 JV with privately held Haoma, which was the miner of the Bulletin starter pit back in 2004.
Looking ahead to the planned production for later this year, Calidus says the open pit will use conventional truck and shovel operations using a specialised contractor, with a strip ratio of 12.2:1, as well as ore loss of 7% and dilution of 37%.
Calidus had around $9 million cash and cash equivalents at hand at the end of December 2023, according to its latest quarterly report.
Images: Calidus Resources
