A local subsidiary of South African company Murray & Roberts is set to be awarded an underground mining services contract for Dacian Gold’s Mt Morgans project near Laverton.
Dacian issued a letter of intent to RUC Cementation Mining Contractors today, ahead of a formal contract award once final terms and conditions are finalised.
The size of the contract is yet to be disclosed. The entire project is expected to cost $220 million, with GR Engineering Services contracted last month to build the 2.5 million tonnes per annum processing facility.
“Works under the underground mining services contract, which will have an initial term of three years with two discretionary one-year extensions, are to include establishment of a new portal for Beresford, rehabilitation of the existing portal and decline for Allanson, all decline and level development, all ore driving, and all stope production,” Dacian said in a statement.
“It is envisaged commencement of construction of the new treatment facility and mobilisation of RUC to Mt Morgans will both occur later this month, with underground mining set to commence in May.”
Dacian executive chairman Rohan Williams said the company now had two of the key contracts in place required to bring Mt Morgans into production in less than a year.
“During the construction phase and initial mining phase at Mt Morgans we will maintain our aggressive exploration programs aimed at discovering new gold resources,” he said.
Shares in Dacian were unchanged at $1.98 each at 10:30am.