Calidus closes in on becoming Australia’s next gold producer

Base infrastructure build to kick off on-ground activities in Q1 2021
Study indicates total production of 623,000oz over eight years
Tesoro Resources (ASX:TSO) hits visible gold in Chile

Calidus Resources (ASX:CAI) is picking up speed as it seeks to become a gold producer, with construction at its Warrawoona gold project in Western Australia’s Pilbara region starting ahead of schedule.

The construction of an access road, accommodation village, communications and water supply will pave the way for main project construction activities to begin in the first quarter of 2021.

It has also awarded Macmahon Holdings (ASX:MAH) preferred tenderer status for open pit mining and brought in GR Engineering (ASX:GNG), allowing finalisation of major contracts as part of the ongoing feasibility study that is due for completion this month.

“The commencement of construction activities at Warrawoona is a major milestone for Calidus,” managing director Dave Reeves said.

“Installing the base infrastructure this year will provide a springboard to allow on-ground activities to kick off in earnest in Q1 2021, subject to finalisation of all permits and financing.”

Warrawoona has a resource of just under 1.5 million ounces of gold grading 1.06 grams per tonne (g/t) gold defined over a continuous 5km of strike that remains open in all directions.

The updated pre-feasibility study indicates that it can produce an average 85,000oz of gold per annum over the first six years with total production of 623,000oz over the eight-year mine life.

Visible gold seen in Chile drilling

Meanwhile, Tesoro Resources (ASX:TSO) has observed visible gold over 61m of drill core within a wider zone of 117m of strong sheeted veining and sulphide mineralisation from step-out drilling at the El Zorro project in Chile.

This hole was located about 120m south of the Ternera mineralised zone while a northern step-out hole returned a 1m intersection grading 5.64g/t gold from 126m within a broader zone of 15m at 0.68g/t gold from 115m.

It noted the step out holes validate the exploration model with gold mineralisation correlating well to IP geophysical anomaly and remains open both to the north and south.

Drilling has also doubled the size of the mineralised footprint at el Zorro.