Calidus Resources Set For Nullagine Restart Following Maiden Gold Resource

Calidus Resources Ltd (ASX:CAI) has reported a maiden gold resource of 6.9 million tonnes at 2.15 g/t for 475,000 ounces at its Nullagine Gold Project in Western Australia.

Importantly, the resources are all free-milling and were targeted in a strategy to establish an initial two years of campaign milling at Nullagine.

This would be in addition to Calidus’ FY25 production guidance of ~60 to 65,000 ounces, via its Warrawoona mill.

Calidus anticipates releasing a feasibility study for the Nullagine campaign milling operations, including maiden reserves, in the September quarter.

Significant existing infrastructure

Nullagine comprises 178 individual tenements covering 533 square kilometres and adjoins the company’s Blue Spec and Felix projects.

It is an established mine site and hosts significant existing infrastructure, including the recently operational 1.8Mtpa Golden Eagle mill.

From 2012 to 2019, Nullagine produced 543,000 ounces of gold at 1.6g/t Au and 87% recovery when the gold price averaged under A$1,500/oz.

Under Novo Resources Corp. (ASX:NVO) ownership Nullagine produced a further 128,000 ounces between 2021 and 2022.

Immediate option to restart production

The Golden Eagle mill was placed on care and maintenance following the completion of mining oxide mining inventory in August 2022.

Nullagine provides an immediate option to restart production at Golden Eagle on a campaign milling basis to process free-milling ore sources.

Calidus also has a longer-term option of centring a new production hub at Nullagine to treat sulphide ores.

Next steps

Calidus Managing Director Dave Reeves said: “We are excited to release an initial Maiden Resources at Nullagine which forms the basis for a Study on the restart of the Golden Eagle mill, which has a nameplate capacity of 1.8Mtpa, on a campaign basis.

“Any production from Nullagine will result in a substantial uplift in Calidus’ overall production profile and provide significant free-cashflow generation as there is no hedging in place on any of these ounces.

“We look forward to releasing a Feasibility Study in the September Quarter 2024 with production targeted to commence no later than Q1 CY25.”

 

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