Calidus Resources (ASX:CAI) has delivered a maiden inferred Mineral Resource Estimate (MRE) of 832,000 tonnes @ 4.1g/t gold for 111,000 ounces (oz) for its Bulletin deposit in Western Australia.
The $94.22 million market capitalisation company says the new MRE comes on the back of a review of historical drillhole data from the Bamboo Creek mining centre. Calidus used a cut-off grade of 0.5g/t Au when estimating the resource.
Further, an initial pit optimisation and economic analysis for the deposit indicates an initial production of 60,000oz to 70,0000oz through an open-pit at an all-in sustaining cost (AISC) of $1,300 to $1,600/oz, suggesting Bulletin could deliver ‘exceptional’ returns.
Calidus Resources Managing Director Dave Reeves says the ‘strong’ maiden resource is an example of the ‘substantial’ upside the company has established within its Warrawoona Project bringing satellite deposits into the project.
“This approach stands to deliver significant growth in production and mine life while leveraging our existing processing infrastructure.
Bulletin is a remarkably high-grade deposit that not only outcrops at surface but is more excitingly completely open at depth.
We will immediately mobilise a drill rig to undertake confirmatory drilling and commence testing the depth potential of the deposit.
“Bulletin is a remarkably high-grade deposit that not only outcrops at surface but is more excitingly completely open at depth”
When mining is finished at the Blue Bar satellite deposit, we plan to move this mining fleet to Bulletin. We will also continue working up the other prospects within the Haoma Joint Venture (JV) with the aim of bringing these into the Warrawoona production schedule.”
Following the maiden MRE, Calidus is planning a program of infill and extensional drilling for the deposit.
The program is aimed to validate the historical drilling data, improve confidence in the MRE, retrieve samples for confirmatory metallurgical testwork, and test the depth extents of the modelled mineralisation.
The Bulletin deposit sits within the Bamboo Creek mining centre, which is less than 60km from the Warrawoona Gold Project.
Calidus Resources is a gold explorer and developer focused on the Warrawoona project in the Pilbara Goldfields of Western Australia.
As of 30 June 2023, the company had $26 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Calidus Resources
