The A$106 million project, outside Marble Bar in the Pilbara, is only 15 weeks into construction, which is going "seamlessly" according to workers on site during an analyst and media visit this week.

"We're pretty proud of what's happening here - the guys on site are doing a sensational job," Calidus managing director Dave Reeves said.

Construction kicked off in late March and remains on time and on budget for first gold in the June quarter of 2022.

Earlier this month, Calidus drew down on the first $25 million of a $110 million Macquarie debt facility.

Reeves estimates that by the end of this month, Calidus will have spent about 40% of the project's budget.

"We're getting into peak spend now. The next four months we're really spending, then it tails off," he said.

The company expects to have spent about 85% of the budget by the end of 2021.

While Western Australia is in the midst of a labour crisis, Reeves said Calidus hadn't felt it on the construction side.

He said the pinch point was operators.

Calidus has invested more into the 240-room accommodation camp to attract workers.

"People will jump ship for a few bucks an hour for a better camp, better food," Calidus chairman Mark Connelly said.

Reeves added: "It's bloody important that the camp is good."

A major upgrade of the Marble Bar airport will begin within 2-3 weeks, which will slash the amount of time it takes to get to site. Current access is via a flight to Port Hedland and a 2.5-hour drive.

"When we talk about attracting people, the airport is absolutely vital for a short commute," Reeves said.

Reeves acknowledged there were costs pressures on the operational side, but the company had tweaked its pit design to ease some pressure.

"We've pretty much pulled every lever we can on that now," he said.

The company factored in a US$60 a barrel oil price in its feasibility study, but oil has since risen to $73.

However, Reeves said the rise would be offset by savings on consumables due to the higher Australian dollar.

The visit to site coincided with the four-year anniversary of Calidus' listing. During that time, resources at Warrawoona have grown from 410,000 ounces to 1.7 million ounces and shares have risen from 2c to yesterday's closing price of 46.5c.

"We're certainly proud of what we've achieved in four years and in nine months, we'll be pouring gold," Reeves said.

The mine, once operational, is set to produce an average 90,000oz of gold per annum over eight years, at all-in sustaining costs of A$1290 an ounce.

The project has a post-tax net present value of $245 million, internal rate of return of 57% and a 15-month payback period at a gold price of $2355/oz.

Warrawoona comprises one large low-strip open pit and an underground mine, as well as a conventional 2-2.5 million tonne per annum carbon-in-leach plant being built by GR Engineering Services.

The entire resource is within 250m of surface and Calidus sees huge underground potential.

"There's a lot more gold to come out of there," Reeves said.

"The Klondyke underground, we haven't really scratched.

"It's topographically challenging getting rigs in. It will be much easier to get in there then ping it from underground."

The company sees an opportunity to increase production via the recent acquisition of the high-grade Blue Spec deposit, about 70km away.

Blue Spec has a resource of 219,000oz at 16.35 grams per tonne gold.

A scoping study showed the inclusion of Blue Spec could increase Warrawoona production to 130,000ozpa at AISC of $1292/oz for capital costs of $28 million, to be funded from cashflow.

Reeves expects stage one to generate $6-7 million of cashflow per month.

"From day dot we'll be making good money," he said.

The enlarged Warrawoona has an NPV of $302 million and IRR of 65% and would increase cashflow over the eight-year life-of-mine by $92 million to $472 million.

Calidus expects to have the definitive feasibility study for Blue Spec completed around the time of first gold from stage one.

Reeves said the earliest stage two would be approved would be six months after first gold.

Pilbara gold boom

While famous for iron ore, the Pilbara is currently a hot spot for gold.

Canada's Novo Resources Corp recently kicked off the Beatons Creek gold operation at Nullagine, reporting record monthly gold production of 5064oz for May and revenue of C$10.8 million.

The company has bigger aspirations for production across a number of Pilbara hubs.

Capricorn Metals is now only days away from first gold at its Karlawinda project in Newman after the company started feeding ore through the plant yesterday.

The $170 million Karlawinda project is expected to produce 110,000-125,000ozpa at AISC of $1140-1190/oz.

Once Capricorn pours first gold, Calidus will claim the title of WA's next gold producer.

Also in the Pilbara this week, De Grey Mining reported a maiden resource for the Hemi gold discovery of 6.8Moz at 1.1gpt gold.

A scoping study is due in the September quarter, with analysts expecting the project of being capable of producing about 350,000ozpa of gold at low costs.