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Calidus Resources (ASX:CAI) - CEO, Dave Reeves
CEO, Dave Reeves
Source: The Market Herald
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  • Calidus Resources (CAI) begins mining at its Warrawoona Gold Project in Western Australia
  • Ore is currently being delivered to the run of mine pad to ensure the project remains on schedule for production in the June 2022 quarter
  • Strong progress is also being made with the processing plant with the crusher now successfully installed
  • The plant is 53 per cent complete with preliminary works for installation of the SAG mill well underway
  • Calidus is up 6.38 per cent on the market with shares trading at 50 cents

Calidus Resources (CAI) has begun mining at its Warrawoona Gold Project in Western Australia’s Pilbara region.

Warrawoona lies 25 kilometres from Marble Bar and covers 780 square kilometres in the Warrawoona Greenstone Belt.

While it’s been forecast to produce up to 105,000 ounces a year, there’s potential to increase this to 139,000 ounces when the Blue Spec deposit is developed.

Ore is currently being delivered to the run of mine (ROM) pad, ensuring Warrawoona remains on schedule for production in the 2022 June quarter.

Strong progress is also being made with the processing plant with the crusher now successfully installed.

The plant is 53 per cent complete with preliminary works for installation of the semi-autogenous grinding (SAG) mill well underway.

Construction is being funded by a loan from Macquarie Bank with $25 million of mezzanine debt fully withdrawn.

Additionally, $8 million has been withdrawn from the $85 million senior secured loan.

Managing Director, Dave Reeves, was pleased with the progress of the plant’s construction.

“We are now more than over 50 per cent built and we are well on track for first gold in the June quarter of 2022,” Mr Reeves said.

“Delivery of first ore to the ROM pad is always an important marker in a project’s development and confirms we are on track to be Australia’s next gold producer.”

“As we complete the tailings dam, we will open up the mining area in preparation for the main mining equipment, which is due to arrive in Q1 2022.”

Calidus was up 6.38 per cent on the market with shares trading at 50 cents at 1:28 pm AEST.

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