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Calidus Resources to acquire Blue Spec Gold Mine near Warrawoona

Mining News - Published on Mon, 21 Sep 2020

Image Source: Calidus Resources Blue Spec Gold Mine
Calidus Resources Limited has entered into a binding agreement with Novo Resources Corp to acquire the high grade Blue Spec Project, located within trucking distance of the proposed Warrawoona Gold Project. Calidus Managing Director Dave Reeves said "The synergistic acquisition of Blue Spec will allow Calidus to look at increasing production using the planned Warrawoona infrastructure. By leveraging our planned sulphide plant and underground mining base at Warrawoona, we intend to undertake study work aiming to significantly reduce costs associated with mining and processing this very high grade deposit, which has the potential to add significant production ounces to Calidus in future years. Extensive work has already been completed at Blue Spec, including mining, metallurgical and environmental studies which will allow a rapid progression of the deposit into our Warrawoona mine plan. With early construction works now underway at Warrawoona and main project construction commencement on track for early next year, we will advance Blue Spec as rapidly as possible. Blue Spec is one of the highest grade gold deposits in Australia and we look forward to reporting on study work and exploration in parallel with the progress being made in construction at Warrawoona."

HIGHLIGHTS

Calidus has signed a binding agreement with Novo Resources Corp for the acquisition of the high-grade Blue Spec Gold/ Antimony Project in the Pilbara region of Western Australia for A$19.5 million cash consideration

Located within trucking distance (~70km) of the Warrawoona Gold Project

Established JORC 2012-Compliant Mineral Resources currently undergoing review by Calidus of 415kt @ 16.3g/t Au and 1.3% Sb for 219koz Au and 5.2kt Sb

Strong exploration potential down dip and along strike

Blue Spec has historical production of ~60koz Au at more than 25g/t Au

Strong potential operational and capital cost synergies between Blue Spec and Warrawoona, while maintaining exposure to ongoing exploration potential:
Focus on increasing production profile, extending mine life and maximising value of planned infrastructure at Warrawoona
Provides flexibility around timing and scheduling of mine operations at Warrawoona
Calidus can utilise in-house expertise and capacity to fast track development of Blue Spec
Planning to utilise existing infrastructure at Warrawoona, which already includes a sulphide plant for treatment of a high-grade open pit satellite deposit
Demonstrates Calidus' commitment to establishing a new regional gold production hub in the East Pilbara district of the Pilbara Goldfield
Plan to commence a strategic review/ integration study and further metallurgical testwork drilling on completion

Source :

Posted By : Yogender Pancholi on Mon, 21 Sep 2020
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