Calidus delivers ‘exceptional’ Bulletin PFS

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
Author Image
Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.

Laramide bolsters Westmoreland uranium potential

Laramide Resources (ASX:LAM) has struck further high-grade uranium mineralisation at the Huarabagoo deposit within its Westmoreland Project in North West Queensland. 

The results come from 13 holes drilled in November 2023 to infill zones of historical drilling and test for potential expansions of the deposit to the northeast. 

Laramide, which has a $238 million market capitalisation, says all 13 holes intercepted multiple zones of mineralisation greater than 100 parts per million U3O8, with some areas exceeding 1% U3O8.

Essentially, these results confirm the expansion potential of the deposit and could help Laramide upgrade the resource classification of the deposit. The Huarabagoo resource estimate currently sits at 5.8 million pounds @ 0.109% U3O8 in the inferred category and 2.7 million pounds @ 0.083% U3O8 in the indicated category. 

Some of the top new drilling hits include hole HB23DD002 with 1.5m @ 1,448ppm U3O8 from 74.5m and hole HB23DD004 with 19m @ 519ppm U3O8 from 47m, including 2m @ 1,690ppm U3O8 from 53m. 

Laramide President and CEO Marc Henderson says the new ‘high-grade’ results underscore the quality of the company’s Westmoreland asset and highlight the ‘significant scope’ to potentially double the size of the Huarabagoo resource. 

“Resource growth is one of the key goals of the 2024 field season, and the technical team is in the final planning stages of a multi-rig drilling program. 

In addition to the strong uranium grades, the deposits also host zones of significant gold and vanadium mineralisation.”

Speaking on these gold grades, Henderson says the Huarabagoo area was explored for gold in the 1980s, and while Laramide remains focused on the uranium opportunity at the project, it will also take on further studies to help identify whether gold could enhance the economics of the project.

In this vein, Laramide’s recent exploration in the area has yielded gold hits such as 1m @ 0.9 grams per tonne Au from 15m, 2m @ 3.1g/t Au from 56m, and 8m @ 0.84g/t Au from 47m. 

Images: Laramide Resources
Author Image
Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.