24/02/2016 - 10:05

Pacific to power Doray's Deflector

24/02/2016 - 10:05

Bookmark

Save articles for future reference.

Power generation company Pacific Energy has won a contract to supply electricity to Doray Minerals’ Deflector gold project in the Murchison region for an undisclosed sum.

Pacific to power Doray's Deflector
Doray's Deflector gold project in the Murchison region is scheduled to begin producing by mid-year.

Power generation company Pacific Energy has won a contract to supply electricity to Doray Minerals’ Deflector gold project in the Murchison region for an undisclosed sum.

Under the contract, Pacific will build, own and operate a seven-megawatt dual-fuelled power station at Deflector for an initial five-year term with options to extend.

Deflector has an initial mine life of six years.

Pacific managing director James Cullen said it was an important contract for the company to secure.

“We have been working with Doray since 2013 at the Andy Well site and are grateful for the confidence they have expressed in Pacific by now awarding the Deflector power generation contract to us,” he said.

“We look forward to contributing to the development of the Deflector project and delivering efficient and reliable power to both sites.”

Work at Deflector will begin immediately, with the station to be commissioned in April.

Meanwhile, Doray announced today it had secured an offtake agreement with Swiss company MRI Trading AG for 100 per cent of gold, copper and silver concentrate produced at Deflector.

With first production scheduled for mid-2016, the offtake agreement is for the entire initial mine life.

Doray managing director Allan Kelly said the agreement came after a lengthy period of negotiations, with a number of parties interested in the project.

“We are very pleased to have negotiated this agreement with MRI and to have secured very favourable commercial terms,” he said.

Pacific and Doray shares were unchanged at 39 cents and 79 cents each, respectively.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options