11/08/2016 - 15:29

Ausdrill wins $157m job at Perseus mine

11/08/2016 - 15:29

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Perth-based Ausdrill has won a $157 million contract to provide mining services to Perseus Mining’s Edikan gold mine in Ghana.

Perseus's Edikan gold mine in Ghana.

Perth-based Ausdrill has won a $157 million contract to provide mining services to Perseus Mining’s Edikan gold mine in Ghana.

Ausdrill, which has previously worked with Perseus, will provide drilling, blasting, load and hauling operations at the Esuajah North pits of Edikan, with work to begin in September.

Ausdrill expects to generate about $US120 million ($A157 million) in revenue from the project over its three-and-a-half year term.

The mining services company will use existing equipment to complete the work, with a team of 280 to be employed for the project.

“Ausdrill has been providing mining services to Perseus since 2011 and we are delighted to extend the relationship we have developed,” Ausdrill managing director Ron Sayers said.

“The award of this contract clearly demonstrates the capability of Ausdrill to continue to deliver quality and cost effective mining services to our clients.”

In June, Perseus raised $102 million from investors to progress development of its Sissingue gold project in West Africa, and to complete a definitive feasibility study on its Yaoure gold project, also in West Africa.

Ausdrill shares were 7.9 per cent lower to $1.04 each at the close of trade.

Perseus shares were 5.1 per cent lower to 55 cents each.

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