Calidus Resources Ltd (ASX: CAI) shares are up 1.75% at the time of writing to 58 cents. The increase in the Calidus share price came after the company announced it is set to commence construction at its Warrawoona gold project in Western Australia.
What was in the announcement?
According to the company, construction works at the Warrawoona project will begin next month. Initially, an access road and 240 person accommodation village will be constructed with the main project construction to begin in 2021. Calidus will use part of the proceeds from its recent $25 million placement, completed in July, to fund the initial construction. Environmental permits have been granted for the initial works, which are also subject to a final objection period.
Calidus Resources announced that it has appointed experienced mining executive, Don Russel, as its General Manager of Operations.
The company's Managing Director, Dave Reeves, commented on the project, stating;
"The early works programme will ensure gold production starts as soon as possible at Warrawoona. Constructing access roads, the accommodation village and supplying communications to site paves the way for the main development works to kick off in earnest in the new year. As part of our development preparations, we are delighted to welcome Don Russel as General Manager for Warrawoona. Don has extensive operating experience at gold mines across Australia in his 30-year career and his skills will be invaluable as we move ahead with this project."
About the Calidus share price
Calidus Resources is a gold exploration company that listed on the ASX in 2017 at a price of 2 cents per share. It controls the Warrawoona gold project in Western Australia. According to the company, the project is a 1.2 million ounce resource.
In its quarterly report to June 2020, Calidus set out that its updated pre-feasibility study demonstrated that the Warrawoona project is set to produce 85,000 ounces of gold per year at an all in sustaining cost of $1,251 per ounce. At 30 June, Calidus Resources held $5.7 million in cash and $1.4 million in listed investments.
The Calidus share price is up 2262% since its 52 week low of 2.1 cents and has returned 132% since the beginning of the year. The Calidus share price is up 71% since this time last year.
