Calidus Resources (ASX:CAI) has received all the environmental permits needed for it to start mining the Blue Spec Gold Project in Western Australia’s Pilbara region.
A mining proposal and mine closure plan has now been approved by the Western Australian government, making the project ‘shovel-ready’, the 94.22 million market capitalisation company says.
Blue Spec is a ‘high-grade’ underground project located within trucking distance of the Warrawoona Gold Project.
The project is one of several Calidus expansion plans for Warrawoona. These include development of the underground mine below the main Klondyke Open Pit at Warrawoona which will target the higher grade main lode of the Klondyke orebody and ongoing review of the high-grade Haoma JV projects for near-mine bolt-on opportunities.
Blue Spec, located 75km from the Warrawoona production plant, hosts a Mineral Resource of 190,000oz at 24g/t and a Mineral Reserve of 83,000oz at 11.4g/t.
All other permits, including the water abstraction license have already been received.
A Front End Engineering Design (FEED) study is underway for a flotation plant that will enable procurement to commence once Final Investment Decision (FID) has been made. Forecast production from the flotation plant is an additional 30,000oz per annum to the current Warrawoona production profile.
Calidus Managing Director Dave Reeves says receipt of this final approval means all the company’s immediate expansion plans are fully permitted.
“The Front End Engineering Study on the plant is progressing well and we believe we will see significant capital reduction from the numbers released in the feasibility study. We are also close to finalising offtake discussions for the Copenhagen concentrate which will be the first concentrate produced by the flotation plant.
Our review of the Haoma JV projects is continuing and we look forward to providing additional information on these high grade deposits as we conclude our review.”
Write to Adam Orlando at Mining.com.au
Images: Calidus Resources
