GR Engineering Services is set to deliver $57 million worth of engineering, procurement and construction (EPC) works for Pantoro at the Norseman gold project in Western Australia.
This includes the purchase of long lead items such as a 3.3 megawatt ball mill and crushing circuit, with engineering works set to commence immediately.
Pantoro has awarded demolition works for the existing plant separately, with site works planned for a start next week.
Pantoro managing director Paul Cmrlec said the competitive tender process had drawn a number of quality submissions, reflecting the quality of the project and the preparatory work completed as part of the Norseman definitive feasibility study (DFS).
The DFS released last year contemplated a build-own-operate-transfer for the crusher, with the transfer planned in the third year.
“We are pleased that GR Engineering Services … will undertake work with their proven track record in new processing plant builds in recent years,” Cmrlec said.
“(GR Engineering) has been the dominant supplier of new processing plant builds in Western Australia in recent times, and we look forward to drawing on their experience in construction of the plant at Norseman.”
Pantoro and GR Engineering expect to finalise the EPC contract this month.
Pantoro acquired a 50 per cent stake in the Norseman project in 2019, with the remaining interest still held by Central Norseman Gold and its subsidiary, Vendor.
The project has a mineral resource of 4.2 million ounces of gold with an ore reserve of 602,000 ounces. It has historically produced over 5.5 million ounces of gold since operations began in 1935.
Upon acquisition, Pantoro announced its plan to establish Norseman as a 100,000 ounces per year operation before expanding it to 200,000 ounces over the following two to four years.