Calidus Resources has hired Macmahon to undertake open cut mining at the Warrawoona gold project in Western Australia in preparation for first production next year.
The contract will allow Macmahon to complete open cut mining activities until December 2026 which will generate $210 million in revenue.
“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,” Macmahon chief executive officer and managing director Michael Finnegan said.
“This contract will add approximately $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 is currently delivering early-stage civil works with 65 personnel on site and is expecting mining equipment to arrive in the first quarter of 2022 to employ a total of 120 workers.
Calidus has passed the 60 per cent completion milestone at Warrawoona and is expecting first production in the June quarter of 2022.
“With only two complete quarters remaining to first gold production, works on site continue at pace on all work fronts,” Calidus managing director Dave Reeves said.
“Concrete works are almost complete and the focus has turned to mechanical and structural installation, the highlight being the installation of the mill shell.
“In addition, we are very pleased to have signed the mining services agreement with Macmahon, which will mobilise in the new year to ensure we have sufficient ore stocks available at mill commissioning.”
Calidus is expecting to produce 105,000 ounces per year at Warrawoona but this could increase to 139,000 ounces when the nearby Blue Spec deposit is developed.