Gold developer Gascoyne Resources has confirmed that NRW Holdings will be its mining contractor at the Dalgaranga operation in the Murchison region of Western Australia.
The six-year contract is for open pit mining services, as well as drill and blast operations and associated services, Gascoyne explained.
NRW announced in October that it had been named the preferred mining contractor for Dalgaranga. It also confirmed the contract award today, saying the agreement would be worth $324 million.
The contractor expects to initially have around 160 workers at Dalgaranga, with its workforce to peak at 200. The majority of NRW’s fleet will be existing plant and equipment, however, approximately $8 million of additional plant and ancillary equipment will be required for the project.
Gascoyne managing director Mike Dunbar said the company had progressed from naming NRW as preferred tenderer to having executed a contract for mining at Dalgaranga.
“We look forward to working with the NRW team to ensure that mobilisation and site establishment progresses as scheduled in January in preparation for mining in March, in line with the development timetable,” Dunbar said.
“Grade control drilling is under way ahead of mining at the Sly Fox and Golden Wing open pits, and the project remains on scheulde to produce first gold late in the second quarter of next year.
“Executing this contract with NRW is the last material contract needed for the project’s development.”