Calidus Resources (ASX:CAI) is set to begin mining in the second half of this year at its Bulletin deposit, as part of the Warrawoona Gold Project in Western Australia.
The $110.25 million market capitalisation company reports Bulletin’s maiden indicated resource has returned ‘strong’ results and positions the deposit to be a key Warrawoona feed source later this year, helping to grow production.
Bulletin’s maiden indicated mineral resource is 429,000 tonnes @ 4.3 grams per tonne (g/t) gold (Au) for 59,000 ounces. The updated Bulletin mineral resource is now 784,000 tonnes @ 4g/t Au for 100,000 ounces.
In conjunction with detailed logging of the 2 resource definition diamond holes, comprehensive geotechnical logging is currently underway on all drillholes.
With the upgrade in classification of the Bulletin mineral resource, Calidus says this geotechnical work will feed into a study which will permit the subsequent declaration of ore reserves.
Samples will be dispatched for assay as soon as possible, while collected structural data will be used to target future extensional drilling down dip, where the Bulletin deposit remains open at depth.
Calidus Resources Managing Director Dave Reeves says the ‘high-grade’ maiden indicated resource at Bulletin is ‘significant’ as it paves the way for ‘substantial’ production growth at Warrawoona.
“Bulletin highlights the benefit of our strategy to incorporate high-grade satellite deposits in the East Pilbara into the Warrawoona mill. This approach stands to deliver significant growth in production and mine life while leveraging our existing processing infrastructure.
When mining is finished at the Blue Bar satellite deposit, we plan to move mining operations to Bulletin, which is located on granted mining leases. This will enable us to capitalise on its high-grade, low costs and amenability to a simple open-pit with minimal upfront capital requirement.
We will also continue advancing our own 100% owned Nullagine prospects with the aim of bringing these into the Warrawoona production schedule. We remain on track to deliver updated guidance to the market later this month post the declaration of a maiden ore reserve at Bulletin.”
Calidus recently completed a diamond drilling campaign, designed to collect geotechnical and structural data and to expedite declaration of ore reserves for Bulletin, alongside confirming the current geological model to support future exploration efforts.
Samples are still yet to be cut for assays, but Calidus reports visible gold had been intersected in hole 24BTDD001 at 84.33m and in hole 24BTDD002 at 67.64m.
Samples will be dispatched for assay as soon as possible.
Calidus Resources is Australia’s newest gold producer focused on its gold and lithium assets in Western Australia. The Warrawoona Gold Project lies in the East Pilbara district of the Pilbara Goldfield of Western Australia.
As of 31 December 2023, the company had $9.039 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Calidus Resources
