Tag Archives: Calidus Resources

Zenith Energy to roll out 5B Maverick solar system across Australian mine sites

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Renewable energy penetration is set to increase on major mine sites in the Goldfields and Pilbara regions of Australia, after Zenith Energy and 5B signed a deployment agreement that could see the 5B Maverick™ system rolled out.

Zenith, one of Australia’s leading independent power producers, and 5B, a clean energy technology provider, signed an Ecosystem Framework Agreement-Deployment, permitting Zenith to be a deployment partner of the 5B Maverick system within Australia.

The 5B Maverick system solar array is prefabricated, allowing rapid deployment while increasing the ability of Zenith to expand renewable assets across existing and future sites, Zenith said. Each 5B Maverick array consists of up to 90 solar panels, mounted on specially designed racks, and optimised for the 540-550 W module class of the utility scale solar industry.

Zenith Managing Director, Hamish Moffat, said the partnership represents the next step in reducing emissions across Zenith’s legacy portfolio.

“We’ve been looking to increase renewable assets across multiple sites for some time; the question has always been around how we can achieve that in such a way that is economically viable,” he said. “The 5B Maverick system is re-deployable, meaning it can be integrated on mines with shorter tenure, and moved at the end of operations at those sites.”

He added: “It offers Zenith greater ability to leverage value from our initial capital expenditure, making it more cost effective to offer expanded renewable energy solutions for our clients.”

5B Co-Founder and CEO, Chris McGrath, said the strategic partnership is an important validation of 5B Maverick’s ability to reduce deployment complexity.

“This has been a major barrier for solar installations on mine sites worldwide,” he said. “The agreement also shows that our cost reduction efforts over the past two years have worked – we’ve hit the price point where 5B Mavericks can be viably packed up and redeployed elsewhere, substantially reducing the risk of stranded assets in mining, agricultural and industrial operations.”

Moffat said Zenith is looking to integrate the 5B Maverick system across three sites initially. These include:

  • Nova: The 5B Maverick will play a major role in Zenith’s industry first ‘engine-off’ project at IGO’s Nova nickel mine, allowing the site to operate on up to nine consecutive hours of renewable energy through the installation of an extra 10 MW of solar, and a 10 MW battery energy storage system;
  • Warrawoona: Zenith recently committed to the supply, installation, and commissioning of a 4 MW DC Solar Farm, using the 5B Maverick, as well as a 3 MW/3 MWh AC battery energy storage system at Warrawoona, owned by Calidus Resources. The hybrid power station configuration will reduce gas use, which in turn results in a reduction in emissions; and
  • King of The Hills: Work is currently underway to install 2 MW of 5B Maverick on the Red 5 site, also supported by a battery energy storage system.

Moffat said the 5B agreement is another key milestone on the company’s journey toward ‘net zero’.

“Our 2035 ‘net zero’ target strikes a balance between ambition and ability to achieve, with the 5B partnership a clear demonstration of our progress and commitment to this goal,” he said.

McGrath said 5B was keen to partner with Zenith, given the independent power producer’s strong reputation and credibility in providing renewable energy solutions to the mining and resources industry.

“We’re keen to develop mutually beneficial partnerships with like-minded companies, and Zenith definitely fits the bill,” he said. “It is great to see Zenith leveraging the ability of the 5B Maverick solar arrays to deploy up to 10 times faster, more safely than single axis tracker and fixed tilt solar systems, to deliver a full solution for their customers.”

Moffat said the partnership offers both Zenith and 5B the opportunity to continue to lead the industry, demonstrating the ability and capacity to effectively integrate renewable energy solutions.

“We have continually said we want to be part of the renewable solution, not just by developing the concepts needed, but by also actively deploying and proving the technology,” he said. “The partnership with 5B allows us to do this and continue to bring our clients on the glide path to ‘net zero’.”

Calidus to incorporate solar power, battery storage into Warrawoona power mix

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Calidus Resources has executed an agreement with Zenith Pacific for the construction of a 4 MW solar farm with 3.5 MW battery energy storage system at its Warrawoona gold project in Western Australia.

Zenith is currently constructing the 11 MW gas-fired power station at Warrawoona under a Power Purchase Agreement (PPA). The construction of the solar farm is part of the PPA whereby Calidus purchases power from Zenith.

The solar farm will be constructed in the second half of 2022 and will feed into the distribution line between the power station and accommodation village.

Calidus Managing Director, Dave Reeves, said the decision to proceed with the solar farm and battery storage was in line with the company’s environmental, social and governance (ESG) initiatives.

“Calidus is committed to carbon reduction as part of its ESG policy,” he said. “This renewable microgrid is a cornerstone to our carbon reduction plan which includes the use of LNG, not diesel, and the ability of the LNG gensets to use up to 25% hydrogen.

“We are pleased to extend the relationship with Zenith to incorporate this renewables project, and look forward to its construction in the second half of this year.”

Calidus plans to start mining at Warrawoona in the June quarter of this year, and is forecast to initially produce 105,000 oz/y of gold.

Macmahon, GR Engineering on board Calidus Resources’ Warrawoona gold project

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Calidus Resources has started construction ahead of schedule at its Warrawoona project, as well as made two key appointments to deliver on its gold mine development in Western Australia.

It has appointed Macmahon Holdings as the preferred mining contractor for the project, while GR Engineering Services has been awarded preferred tenderer status for the process plant engineering procurement and construction.

While construction activity has already commenced ahead of the main project construction activities, which are expected to kick off in the March quarter of 2021, these contract tenders will allow finalisation of major contracts as part of the ongoing feasibility study at Warrawoona, due for completion this month, Calidus said. It will also help facilitate front end engineering and design for the project and the placing of orders for long lead items.

This project involves the development of a new open-pit mine in the Pilbara region, with the scope of work for Macmahon to include all open-pit mining activities, and potentially some early stage civil works.

Macmahon estimates the open-pit mining work will generate around A$220 million ($160 million) in revenue over 54 months and require capital expenditure of circa-A$30 million. There is also potential for the Warrawoona project to include underground mining, which could represent a further opportunity for Macmahon when this is developed, it said.

Macmahon expects it will start work on site in the first half of 2021, with the project to eventually employ more than 120 of its personnel.

GR Engineering, which has completed the last two gold plants in Western Australia, according to Calidus, will work on the design and construction of the process plant and associated infrastructure, meanwhile.

A prefeasibility study on Warrawoona completed in July 2019 outlined average gold production of 97,000 oz/y at an all-in sustaining cost of $1,159/oz over an initial six-year mine life via a 2 Mt/y conventional CIL processing circuit with single stage crush and SAG mill.

Among the initial works the company has started are 7 km-long access road to the village and process plant (pictured); the installation of the 240 room village that has been previously purchased by Calidus; the installation and operation of communications by Telstra; and the installation and equipping of water bores.

GR Engineering lends gold study expertise to Calidus’ Warrawoona project

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Calidus Resources has appointed GR Engineering Services to carry out the prefeasibility study (PFS) on its Warrawoona gold project in Western Australia.

The PFS is scheduled to be completed in the September quarter.

Calidus said: “GR Engineering are an ASX-listed engineering company that has successfully managed 19 gold feasibility studies and the construction of three gold processing plants in Western Australia in the last two years and has an excellent track record of delivering process plants on time and on budget.”

Calidus Managing Director, Dave Reeves, said: “The appointment of GR Engineering to undertake the PFS for Calidus is another step towards development of the Warrawoona gold project.

“Detailed inputs for the study have been collected over the last 12 months to ensure an accurate representation of the economics can be provided to investors on the completion of the PFS and allow discussions to commence with debt financiers.

“With regional drilling of untested anomalies due to commence next month in parallel with the PFS, we believe we are just starting to unlock the true value of this untested greenstone belt in Western Australia.”

Calidus has outlined a resource of 21.3 Mt at 1.83 g/t Au for 1.25 Moz at Warrawoona, which includes a higher-grade component of 14.6 Mt at 2.37 g/t for 1.1 Moz. Around 64% of the resource is classified as indicated.