Tag Archives: Warrawoona

Macmahon Holdings finalises Calidus Warrawoona gold project contract

Macmahon Holdings Ltd says it has now finalised a mining services contract with Calidus Resources Ltd for the Warrawoona gold project in Western Australia.

The news follows Macmahon’s selection as the preferred contractor for the project in 2020.

This contract involves the development of a new open-pit mine in the Pilbara region, with the scope of work for Macmahon expected to include all open-pit mining activities until December 2026. Macmahon anticipates the contract will generate revenue of approximately A$210 million ($154 million).

This contract is in addition to the early-stage civil works Macmahon is currently undertaking on site with 65 personnel. The company expects the main mining equipment to arrive on site in the March quarter of 2022, with the project to eventually employ around 120 Macmahon personnel.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to finalise this mining contract with Calidus Resources for its Warrawoona gold project, which follows on from the civil work we are currently undertaking on site. This contract will add approximately A$210 million to our order book and is a welcome addition to our growing portfolio of Western Australian gold projects. We have built a strong relationship with the Calidus team since we commenced on site earlier this year and look forward to developing this project with them.”

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

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

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.