ASX-listed gold producer Calidus Resources (ASX:CAI) has achieved a new record production rate during February at the Warrawoona Gold Project in Western Australia.
The company reports a total of 182,000 tonnes of ore at a reconciled grade of 0.89g/t gold (Au) was processed with 5,005 ounces of gold recovered. This equates to 180 ounces per day or 66,000oz per year.
Calidus notes the February numbers should be taken in the context of it being a 28-day month, and it included a planned mill maintenance shutdown day.
Commenting on the production rate, Calidus Resources Managing Director Dave Reeves says: “It is very pleasing to see Warrawoona continuing to improve in all aspects of operation on a month-by-month basis.
“It is very pleasing to see Warrawoona continuing to improve in all aspects of operation on a month-by-month basis”
These continual improvements provide a solid base for a long-term high margin operation at Warrawoona and have allowed us to start turning our focus to the expansion projects which will take Warrawoona to 130,000 ounces per annum.”
During February, the company reports mining achieved budgeted movement of 455,000 BCMs and the mill operated at 300 tonnes per hour (tph), which is 6% above the estimated blend throughput rate.
Calidus also reports the drilling of 17 closely spaced holes targeting extensions of previously reported ‘high-grade’ intercepts of 6m @ 40.15g/t Au at the recently discovered Felix deposit has been completed. Assay results for these holes are expected in early April.
The company also says guidance for the first half of 2023 remains unchanged at 31,000 to 36,000 ounces at $2,000 to $2,250 per ounce due to current maximum strip ratios being undertaken in the pit.
As the strip ratio decreases to Life of Mine (LOM) averages combined with the increased milling performance, the company is targeting an average LOM open pit all-in-sustaining-costs (AISC) of between $1,700 to $1,850 per ounce. Calidus reports more detail will be provided in the guidance to be released at year-end.
The company also made a further $5 million debt repayment in February reducing the outstanding balance of the project loan facilities to $97 million.
Calidus Resources is an ASX-listed gold producer that is ramping up the 1.7 million ounce Warrawoona Gold Project in the East Pilbara district of Western Australia.
The company also holds the Blue Spec Gold Project located 70km from Warrawoona. This project hosts 2 ‘high-grade’ shoots, which has a global mineral resource of 190,000 ounces of gold at 24.4g/t Au.
Images: Calidus Resources Ltd
