Gascoyne Resources has chosen NRW Holdings as the preferred mining contractor for its Dalgaranga gold operation in the Murchison region of Western Australia.
The contract, estimated to be worth $300 million, will focus on open pit mining, including drill and blast, of four pits over a six-year period.
Dalgaranga has an initial six-year mine life to produce around 100,000 ounces of gold a year at cash costs of about $1000 an ounce.
The gold developer believes there is significant potential to extend the mine life at Dalgaranga through near mine discoveries, such as the Sly Fox prospect.
Gascoyne managing director Mike Dunbar said the company was pleased to attract NRW to the project.
“NRW is a highly respected mining contractor, with the mining experience required for the project with all key personnel and equipment available now, ensuring that we will be able to commence mining in March 2018 in accordance with the development plan,” Dunbar said.
“We look forward to working alongside NRW to ensure the successful development of the company’s Dalgaranga gold project.”
NRW, which will utilise existing plant and equipment on the project, plans to initially have 160 workers at Dalgaranga, with its workforce expected to peak at 200.
Jules Pemberton, NRW managing director, said the contract would expand the mining services company’s commodity base in WA’s robust gold sector.
“NRW has been involved with the Gascoyne team for some time through the early project studies and we look forward to working with Gascoyne on this exciting new major gold mine development,” Pemberton said.
Gascoyne has rapidly advanced development of the Dalgaranga project over the past year as it moves the operation towards production in the first half of next year.
The company awarded a $66.5 million engineering, procurement and construction (EPC) contract for Dalgaranga to GR Engineering.
It also secured loans worth up to $60 million in September to help fund development of the project.