Ausdrill wins $58m Ghana contract

Ausdrill Resources has secured a three-year $58 million open pit mining contract with Adamus Resources for its gold project in Ghana.

Ausdrill's subsidiary African Mining Services will provide drilling, blasting, loading, hauling ore and waste, crusher feed and pit dewatering services for the Nzema gold project.

"AMS was chosen from five tendering companies based on overall costs, extensive project experience in Ghana and their capability to deliver suitable equipment and servicing arrangements," said Adamus Resources CEO Mark Connelly.

"In addition, AMS have had a long association with Adamus in Ghana having performed exploration and grade control services on site and we look forward to strengthening the relationship between the two companies," he said.

AMS is expected to start work on the site in November.

See company statement below:

Adamus Resources Limited (ASX:ADU) is pleased to announce the award of the open pit mining contract to African Mining Services ("AMS"), a wholly owned subsidiary of Ausdrill Limited, for the Nzema Gold Project in Ghana.

Adamus has issued a letter of intent to AMS for a 3 year contract worth approximately US$58 million for drilling, blasting, loading, hauling ore and waste, crusher feed and pit dewatering services.

Mr Mark Connelly, CEO of Adamus Resources said "AMS was chosen from five tendering companies based on overall costs, extensive project experience in Ghana and their capability to deliver suitable equipment and servicing arrangements. In addition, AMS have had a long association with Adamus in Ghana having performed exploration and grade control services on site and we look forward to strengthening the relationship between the two companies".

It is anticipated that AMS will commence work on site in November 2010. Grade control works and compensation has secured full access to all areas in the 2011 and 2012 mine plan.

FIRST ORE TRUCKED TO ROM PAD
In the interim, a local contractor managed by Adamus has commenced trucking ore
from the Nugget Hill and Teburu pits to the ROM pad.

The final stages of construction of the plant site and associated facilities remain on schedule with Adamus targeting first gold pour in Q1 2011.