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AUSTRALIAN GOLD REVIEW

fixated on decarbonisation,” Reeves said. “There are many problems,” he said. “Those operations already built are doing
things we are doing on environment and community, for well. The likes of Evolution [Mining Ltd] and Silver Lake
instance, which demonstrate our approach.” [Resources Ltd] at Deflector are doing well selling a concentrate.”
With a production rate of 90,000 ozpa at AISC of $1,290/ The make-up of the Blue Spec concentrate should also make it
oz over eight years. Payback inside 2.5 years is standard for an attractive product.
a junior gold developer but Calidus has a potential ace up its “It depends on the quality of the concentrate,” Reeves said.
sleeve in the form of the Blue Spec deposit, 60km south-east “Antimony is on quite a tear in the last six months and it has
of Warrawoona. become a quite strategic element. So, if you’ve got a plus-100
Acquired in 2019, Blue Spec has the potential to deliver high- g/t gold equivalent concentrate you get very good terms with
grade ounces to the project with recent drilling results – including more than 100% payability on the contained gold.”
4.1m @ 33.6 g/t, 2.55m @ 44.1 g/t and 3.1m @ 20.4 g/t – the Blue Spec offers an immediate growth option but, conscious
latest in a series of exceptional intersections. of the market’s desire for immediate growth plans for new
Calidus is working up a DFS for a niche underground operation producers, Reeves is already preparing for mine life extensions.
at Blue Spec which will deliver a combination of free and “We have a programme drawn up for this year and once we
refractory gold. receive drilling results from late 2021, we will get started,” he
“It is a great little add-on. It will deliver another 30,000 ozpa of said.
gold and generates a lot more free cash flow,” Reeves said. As well as exploration, Calidus is prepared to re-enter the M&A
“The aim is to have the DFS finished in the June quarter and all market once gold is flowing from the Warrawoona plant.
permitting completed by the end of the year allowing us to kick “We don’t want to be a single asset producer,” Reeve said. “We
off early works.” are out there looking but there is not much we are seeing of
The refractory nature of the ore means Blue Spec material value but we have got some ideas as there are stranded assets
requires more complex treatment than the standard CIL being around us.
used for the main Klondike deposit. “We are prepared to deal, it took us seven transactions to tie up
“It looks like we’ll get quite a reasonable amount of gold via Warrawoona, and if we see an opportunity for rapid addition, we
gravity and we will then sell an antimony-gold concentrate and will certainly move on it.”
then push the tailings through the CIL circuit,” Reeves said. Reeves believes Calidus’ entry into the producer ranks could be
Gold concentrate markets have grown in recent years with an advantage in dealing with less advanced companies. The
traders in China and Russia showing particular interest. surging prices Calidus has avoided could see it well placed to
However, the market has not always proven easy for Australian offer alternatives to those caught in spiralling inflation.
producers but Reeves refutes any concerns. “There is not a lot of love for companies starting a new project
“People talk about selling concentrates as being difficult but it now because of the uncertainty around costs, etc,” he said. “We
is only those which haven’t been built which have encountered see some options around that once we are in production.”

First gold from the Warrawoona CIL plant was expected in April

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