GR Engineering Services has finalised a $66.5 million package of work for the construction of processing facilities at Gascoyne Resources’ Dalgaranga gold project in the Murchison region.
GR Engineering will design and construct a new 2.5 million tonnes per annum mineral processing plant and associated infrastructure for the project, with work to begin immediately.
The Dalgaranga project is expected to begin producing during the second quarter of the 2018 calendar year.
The contract is on a guaranteed maximum price basis, with a contract sum of about $66.5 million.
GR Engineering received a letter of intent for the contract in March and has since carried out front-end engineering design work at Dalgaranga.
“We are glad to have progressed the March 2017 letter of intent by entering into the contract and commencing the full scope of work to bring the Dalgaranga gold project into production,” GR Engineering managing director Geoff Jones said.
Gascoyne managing director Michael Dunbar said having GR Engineering building the processing facilities at Dalgaranga ensured the project would be built on budget and with the highest degree of safety and in a timely manner.
“We look forward to working with GR Engineering to deliver a safe and successful project for our shareholders,” he said.
GR Engineering shares were unchanged at $1.57 each, while Gascoyne shares were 1.1 per cent lower to 42 cents each, at 10am.