Gold producer Calidus Resources has announced a maiden mineral resource for the Nullagine gold project, with 65 per cent falling into the measured and indicated category.
The Nullagine gold project is located in the Mosquito Creek Basin within the Archaean Pilbara Craton of Western Australia.
Its mineral resource now sits at 6.9 million tonnes (Mt) at 2.15 grams per tonne (g/t) of gold (Au) for 475,114 ounces (oz), with 4.1Mt at 2.33g/t Au for 307,497oz falling into the measured and indicated category.
The resource will be implemented into an upcoming feasibility study on the Golden Eagle mill that’s located about 9km south of Nullagine.
“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 (million tonnes per annum), on a campaign basis,” Calidus managing director Dave Reeves said.
“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 2024 quarter with production targeted to commence no later than Q1 CY25 (the first quarter of 2024).”
Alongside Golden Eagle mill, Nullagine hosts existing infrastructure such as a 230-person accommodation village, a 10-megawat power station, administration buildings, workshop, warehouse, laboratory, a communications network, water supply, and storage and tailings facilities.
Calidus acquired Nullagine in December 2023 from Novo Resources. Calidus also acquired Novo’s Blue Spec gold-antimony project in 2020 and the remaining tenements at the Warrawoona gold project in 2021, both located in WA.
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