Macmahon Holdings has signed a four-year, $220 million contract with Silver Lake Resources to perform mining works at the Deflector gold-copper mine in Western Australia.
The contract follows ongoing success for Macmahon since its 2019 acquisition of GBF, which has been providing mining services at Deflector since 2016.
Macmahon chief executive and managing director Michael Finnegan said he was pleased with the contract and how his company’s business plan is panning out.
“This new contract is an important milestone in our strategy to expand our underground business and is a clear demonstration of the benefits we are now realising from the GBF acquisition,” Finnegan said.
Silver Lake testing at the Deflector site in September 2020 identified potential for growth at the project, warranting the size of the contract, with ‘spectacular high-grade gold/copper intersections’ detected.
In the same week, Silver Lake’s board approved access, development and production at Deflector, with that announcement hinting such a contract would be struck in the 2021 financial year.
Finnegan acknowledged the promise shown by the Deflector mine.
“Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macro environment. We look forward to continuing to support the development of Deflector,” he said.
Macmahon’s Deflector contract with Silver Lake follows a contract extension via GBF with Pantoro at the Wagtail and Nicholson underground operations in Western Australia last December.
The two-year extension with Pantoro meant GBF’s tenure at the project would continue until 2023.