Silver Lake Resources is set to contract GR Engineering Services at its Deflector gold-copper operations in Western Australia.
GR Engineering will be involved in upgrading the flotation tailings leach process at Deflector under a $23 million contract.
This will be undertaken on an engineering, procurement and construction (EPC) basis.
The EPC contract will be finalised next month and followed by an immediate commencement of early works by GR Engineering.
Geoff Jones, managing director of GR Engineering, said the letter of intent (LOI) represented the mining services company’s first major project with Silver Lake.
“We are looking forward to engaging closely with the Silver Lake team to deliver safe and successful outcomes for the project,” Jones said.
Silver Lake produced 24,577 ounces and 438 tonnes of copper at the Deflector mine in the March quarter.
The company is working to upgrade the Deflector plant, with the Rothsay ore to form part of the feed starting the first quarter of the 2022 financial year.
The Deflector operation is a shallow narrow vein, high grade underground mine. It is located in the Murchison region of Western Australia, 450 kilometres north of Perth and 160 kilometres east of Geraldton.