Phoenix Gold has awarded a number of mining contracts for its Kintore West open cut mine for undisclosed amounts, as part of the company’s staged development plan.
Phoenix said Kintore West, part of the Castle Hill project area, was the first mine in a series of smaller scale mines to be developed under the staged development plan, with 21 mining proposals and 11 haulage proposals received in the June quarter.
“Development of Kintore West is a significant milestone for Phoenix and will be the first in a series of mines under the staged development plan,” Phoenix managing director Jonathan Price said.
“We received over 20 proposals for the mining contract and over 10 for the haulage contract demonstrating a very competitive tender process in what is an improving cost environment.”
The mining contract was awarded to Alliance Contracting, a mining contractor operating locally in the Goldfields region, who has mobilised an excavator, dump trucks and an ancillary fleet to maintain roads floors, stockpiles and waste dumps.
“We are excited to be a part of the Phoenix team and look forward to the safe and successful delivery of this project while continuing to support the goldfields region,” Alliance chief executive officer Mark Breingan said.
The haulage contract was awarded to MLG Oz, a locally based haulage company that will transport ore to the Greenfields mill, using quad road trains with 100 tonne payload.
“We are now focused on transitioning the business from exploration to producer, continuing to work with Norton Gold Fields on the Castle Hill development and completing the updated heap leaching feasibility study for the Castle Hill area,” Mr Price said.
In March Phoenix raised 18.2 million through a capital raising to fund staged development at Castle Hill.
Earlier in July it purchased St Ives Gold Mining’s heap leach processing plant near Kambalda for $2 million, which will enable the treatment of lower grade iron ore mined from Castle Hill.
Mining is expected to commence in the September quarter.
Phoenix’s share price fell by 3.45 per cent to 14 cents per share at 12:50pm.
