Beadell extends Ausenco relationship

Perth-based Beadell Resources has targeted March next year to begin producing gold from its Tucano project in Brazil, after signing a $75 million deal with Ausenco to manage the delivery of a processing plant at the mine.

Beadell said funding discussions were well advanced with a both a Brazilian development bank and a short list of international banks offering a project finance facility.

"This represents another important step in the company's transition into a significant gold producer with first gold production forecast in the March 2012 quarter," Beadell managing director Peter Bowler said.

Under the contract, Ausenco will design, build and operate a carbon in leach (CIL) gold processing plant at the Tucano project, which was formerly known as Amapari.

Ausenco previously completed a definitive feasibility study at Tucano for Beadell, and were also commissioned by Beadell to undertake early works detailed engineering and procurement of long-lead items for the mine.

"This approach will ensure that Ausenco can seamlessly continue with completion of engineering and mobilisation for the start of construction and enable Beadell to produce gold from the Tucano operation in the March 2012 quarter," Beadell said in a statement.

Ausenco chief executive Ziml Meka said that the contract built on the company's earlier phase work with Beadell.

"We have extensive knowledge of the project and a strong working relationship with the project team and look forward to continue to work with Beadell to deliver gold from Tucano," Mr Meka said.