Calidus Resources (ASX: $CAI) announces maiden resource at Nullagine gold project

Calidus Resources Limited (ASX: $CAI) has announced the maiden JORC 2012 Mineral Resource at the Nullagine Gold Project, with a total of 6.9 million tonnes at an average grade of 2.15 grams per tonne gold, amounting to 475,114 ounces. The company has initiated work on a Feasibility Study for the restart of the Nullagine Mill on a campaign basis, expected to be completed in the coming quarter.

Calidus Managing Director Dave Reeves on Nullagine resource and production outlook

Calidus Managing Director Dave Reeves expressed excitement about the initial Maiden Resources at Nullagine, which will form the basis for a Study on the restart of the Golden Eagle mill. He highlighted that any production from Nullagine will result in a substantial uplift in Calidus' overall production profile and provide significant free-cashflow generation as there is no hedging in place on any of these ounces. Reeves also mentioned that the company looks forward to releasing a Feasibility Study in the September Quarter 2024 with production targeted to commence no later than Q1 CY25.

Outlook for Nullagine project and Calidus Resources

The announcement of the maiden JORC 2012 Mineral Resource at the Nullagine Gold Project marks a significant milestone for Calidus Resources, positioning the company for a potential restart of the Golden Eagle mill. The Feasibility Study for the mill restart, including Maiden Reserves, is expected to be released in the September Quarter 2024, with production targeted to commence no later than Q1 CY25. Calidus anticipates that any production from Nullagine will substantially enhance its overall production profile and provide significant free-cashflow generation, as the ounces are unhedged. The company also aims to complete studies on how to treat sulphide ores at Nullagine, further enhancing its production capabilities.