Receives Government Stamp Of Approval For PMP
Calidus Resources Limited (ASX: CAI) has received government approved for the Project Management Plan (PMP) for its 100% owned Warrawoona Gold Project in Western Australia.
The company said it expects the remaining two approvals, being the Mining Proposal and Works Approval to be granted shortly, which will pave the way for main construction to commence, which is anticipated in the coming quarter.
Managing Director, Dave Reeves said development at Warrawoona commenced ahead of the announcement of the Feasibility Study on the September 29, 2020 which confirmed the robustness of the projects economics.
“The pace of construction continues to gain momentum. Installation of the key base infrastructure has rapidly advanced and will provide a springboard to allow on-ground activities to kick off in earnest in early 2021,”Mr Reeves said.
“With the completion of the $110m debt financing announced recently, and the PMP approval, we will now look to conclude all major contracts, and once the final regulatory approvals are obtained, to commence main project construction in the coming quarter.”
Development activities
Accommodation village
Significant progress was made on the installation of the 240 room accommodation village with plumbing, electrical and concreting work being completed on the first two rows of units during the month. The project’s construction workforce is expected to commence occupancy by early 2021 once relevant permits are attained.
Engineering and Procurement
An order has been placed with Citic for the purchase of a 7.1m diameter x 5.6m Effective Grind Length, 4,500kW SAG Mill. The mill will be delivered to Port Hedland and transported to site. The approximate time frame for delivery is 40 weeks. An order has also been placed for the SAG Mill Motor with other items to be ordered prior to the end of 2020 including the Thickener, Jaw Crusher and Apron Feeder.
Site access road
The construction of a seven km access road to the village and process plant was completed in late October. Completion of the access road will allow delivery of all equipment and supplies during construction and operations.
Water bores
Water bore construction and pump testing was completed in October 2020 and pipe work is now installed that connects bore field lines to the camp and the proposed process plant site for construction water.
Development Outlook
Development activities at Warrawoona for the remainder of the December 2020 quarter will include various key work streams being progressed including:
- Continuation of the 240 room camp installation
- Commission the communications tower (expected early December)
- Finalise Front End Engineering and Design (FEED)
- Execute EPC contract with processing facilities contractor GR Engineering (GRES)
- Award Power Station Preferred Contractor
