Swick announces new deals, extensions

Swick Mining Services says new contracts and extensions of current deals will see it operating nine extra drilling rigs by the first quarter of 2012.

Swick managing director, Kent Swick, said the company's order book was now in excess of $215 million.

"New contracts requiring a minimum of three rigs have been recently awarded to the underground diamond division by NQM Gold and Tagish Lake Gold in the Yukon Territory of Canada; further cementing Swick as one of the world's leading underground diamond drilling service providers," Mr Swick said.

"The RC division is also performing strongly with six of the seven available rigs to be in work by July 2011.

"New contract awards include two rigs for Rio Tinto Iron Ore in the Pilbara region of Western Australia, and one rig for Altona Minerals in the Cloncurry region of Queensland."

Swick said it would also tender on a number of fresh prospects both in Australia and North America and expected to increase its rigs in work throughout 2011.

Swick is currently utilising 64 per cent of its 67 rigs, and expects this to increase to 78 per cent by the first quarter of 2012.

At close of trade today Swick shares had increased 7.6 per cent to trade at $0.35.