Calidus Resources

Website: www.calidus.com.au
Primary ticker: ASX:CAI
Stage of development: Exploration, Development
Commodity: Gold
Project to promote: Warawoona Gold Project
Project location: Australia
Company presentation: Click here

Live financials

Cash: AUD$7M
DebtNil

Major shareholders:
Alkane Resrouces – 12.99% 
Eleanor Jean Reeves – 7.36%
HSBC Custody Nominees (AUSTRALIA) – 4%
Citicorp Nominees Pty Ltd – 3.76%
J P Morgan Nominees Aust. Pty Ltd – 3.51%
Management ownership – 8.3%

Calidus Resources is an ASX-listed advanced gold exploration and development company controlling the 1.25Moz Warrawoona Gold Project in the East Pilbara Goldfield of Western Australia. In July 2019, Caldius released a PFS for Warrawoona confirming an attractive 100,000 ozpa gold development project with AISC of A$1,150/oz and a capital cost of A$95m. Having been granted “Streamlined Environmental Approval” by the EPA, permitting should be completed in CY2020. Calidus is on-track to deliver its Feasibility Study in Q4CY2020, with construction to commence in CY2021.

Management Profile

Dave Reeves, Managing Director

David Reeves is a Perth-based, qualified mining engineer with 30 years of experience in the mining industry, he is currently a director of Keras Resources Plc (AIM) and Non-executive Chairman of European Metals Holdings (ASX and AIM). Mr Reeves has extensive experience in international capital markets through involvement with various listed London and Australian companies.

Mr Reeves has a first class WA Mine Managers ticket and a Graduate Diploma in Finance and Investment.


What is your rationale for attending 121 Mining Investment?

Gaining exposure to potential investors.


What recent news would you like to highlight to investors attending?

On 27th February “Streamlined Environmental Approval” by the EPA granted, meaning all permitting should be completed in CY2020.

On the 6th of February, Calidus announced the purchase and mobilisation of a 240 room camp to Marble Bar. This is a clear signal that the Company is gearing up to develop the project in just under 12 months.

In December 2019, Caldius released high-grade drill intercepts below the planned Klondyke Pit and at Klondyke West, increasing the confidence and potential size of the existing 1.25Moz Resource.


What are your key goals for the next 3, 6 and 12 months?

3 Months:

Resource and Open Pit Reserve Update.

6 Months:

Feasibility Study Completed and Environmental Approvals.

12 Months:

Construction to begin.


What do you think makes your company such a compelling investment?

The company is trading at a massive discount to producers and will significantly re-rate as it moves towards production.

Analyst Insight – provided by Independent Investment Research

Calidus Resources is an ASX-listed advanced gold exploration and development company controlling the 1.25Moz Warrawoona Gold Project in the East Pilbara Goldfield of Western Australia.

Historically fragmented ownership has held back development of the area. Calidus now controls the entire Warrawoona Greenstone Belt with a total of 780 sq km under its control. Since listing in mid-2017 with a resource of 411k oz, the company has undertaken a systematic modern approach to exploration and tripled the resource base to its current 1.25 million ounces.

The company believes that the recent consolidation of this goldfield will transform it into a new Australian gold development company, with significant potential to unlock further resources and new discoveries within the emerging gold belt of the Pilbara Goldfields.

During July 2019, Caldius released a PFS for Warrawoona confirming a high-margin gold operation, with average gold production of 97,000ozpa at $1,159/oz AISC over an initial 6-year mine (616,000 ounces within the initial mine plan comprising 11.9Mt @ 1.6 g/t Au), via a 2mtpa conventional CIL processing circuit with single stage crush and SAG mill. The capital cost is estimated at A$95m, with Pre-tax NPV8 of A$150.7 million and IRR 39.5% based, on a A$1,800 gold price.

Having been granted “Streamlined Environmental Approval” by the EPA, permitting should be completed during CY2020. Calidus is on-track to deliver its Feasibility Study in Q4CY2020, with construction to commence in CY2021.

There is believed to be excellent potential for Resource growth through infill and extensional drilling, with mineralisation outcropping at surface at all deposits and open along strike and down dip at all deposits. Calidus maintains 780 sq km of highly prospective tenure covering the entire greenstone belt and containing over 200 historic workings provides large exploration upside.

Its Klondyke Prospect has a current 2012 JORC Code compliant Inferred Resource of 20Mt at 1.79g/t Au for 1.15 million ounces and includes 750,000 ounces in the Indicated Category; while its Satellite Deposits of Copenhagen, Coronation and Fieldings Gully have a combined current 2012 JORC Code compliant Inferred Resource of 1.2Mt @ 2.53g/t Au for 98,000 ounces.