Gold developer Gascoyne Resources remains on track to be producing at its Dalgaranga operation in Western Australia during the second quarter of 2018.
The company, which today provided an update on progress at the site, said construction work at the 100 per cent owned project was “advancing well on all fronts”.
This includes engineering and design of the mine’s 2.5 million tonne per annum (Mtpa) processing plant, which is 91 per cent complete.
Gascoyne’s engineering, procurement and construction (EPC) contractor, GR Engineering, mobilised at the site in August.
GR has completed SAG mill foundations, the carbon-in-leach (CIL) tank foundations and bunding, and construction of the workshop and warehouse in the time since.
The mining services company is also well advanced on the CIL tank erection and steel fabrication requirements.
Gascoyne last month named NRW Holdings as the preferred mining contractor for the operation. It is expected that mining will be launched by NRW in March next year.
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.