Gascoyne Resources has officially awarded an engineering, procurement and construction (EPC) contract to GR Engineering at the Dalgaranga gold project in Western Australia.
The two companies signed a letter of intent for the contract, which involves the design and construction of the operation’s mineral processing plant, in March.
GR has already launched work on the 2.5 million tonne a year processing plant and associated infrastructure at the site, according to Gascoyne.
The contract, secured on a guaranteed maximum price (GMP) basis, is worth around $66.5 million to GR.
According to a Gascoyne statement, GR will initially continue engineering design and procurement activities before it is granted site access, expected in August following sufficient earthworks at the site.
Gascoyne managing director Mike Dunbar said the agreement with GR ensured that the project would not only be built on budget, but with the highest degree of safety and also in a timely manner.
“We are pleased to have entered into the EPC contract with GR Engineering, which has already commenced activities to bring the 100 per cent owned Dalgaranga gold project into production in the second quarter of 2018,” Dunbar said.
Gascoyne completed a $50 million capital raising to help fund development of the Dalgaranga project earlier this year. The project is about 70km northwest of Mt Magnet in the Murchison gold mining region of WA.
GR managing director Geoff Jones added: “We are glad to have progressed the March 2017 letter of intent by entering into the contract and commencing the full scope of work to bring the Dalgaranga gold project into production.”