GR Engineering secures $87m contract
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GR Engineering Services has entered into a contract with Golden Spur Resources, a wholly owned subsidiary of Bellevue Gold.
The engineering consultancy announced on the ASX today the contract sum is $87.8 million.
The contract is for engineering, procurement and construction works on the 1.0 Mtpa gold processing plant and associated infrastructure for the Bellevue Gold Project in Western Australia.
Bellevue Gold is developing a high-grade underground gold mine at the Bellevue Gold Project, designed around a 1.0 Mt per annum processing plant using a conventional gravity and leaching circuit.
Mining will be predominantly from underground production from two production centres accessed from the same portal.
GR Engineering started work on the gold project under a preliminary works agreement, as announced on the ASX in May.
“GR Engineering is pleased to continue its involvement on this exciting gold project,” managing director Geoff Jones said.
“Our clients are increasingly seeking certainty and a track record of performance and GR Engineering has been able to demonstrate this to Bellevue, including by reference to its strong track record of successful project outcomes in the Western Australian gold sector.”
In an ASX announcement released today, Bellevue Gold said up to $7.5 million of the contract price could be paid to GR Engineering in Bellevue shares, as part of the contract.
Bellevue managing director Steve Parsons said the appointment of GR Engineering Services ticked another key box on the path to production and cashflow.
“The appointment of GRES to build our processing plant means we have yet another tier-one contractor helping ensure we meet all our operating and financial targets,” he said.
“GRES knows the Bellevue project well, having been involved in the early studies. And they are extremely experienced in designing and building gold plants in WA.
“Their readiness to accept Bellevue shares as part-payment is a strong vote of confidence in our project and the outlook for our company.”