10/11/2016 - 13:58

Swick preferred for work with Newmarket

10/11/2016 - 13:58

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Swick Mining Services shares closed 14 per cent higher on the ASX today after the company announced it had been named the preferred proponent for underground drilling work for Newmarket Gold.

Swick managing director Kent Swick.

Swick Mining Services shares closed 14 per cent higher on the ASX today after the company announced it had been named the preferred proponent for underground drilling work for Newmarket Gold.

Swick said today it had been selected as the preferred tenderer for a significant underground diamond drilling contract by Newmarket Gold, for the TSX-listed gold miner’s Fosterville, Stawell and Cosmo mines in Australia.

The value of the contracts were not disclosed.

Swick expects an initial deployment of eight rigs to the mines, with work to begin during the first quarter of next year.

The tenure of the contract is for three years.

“We are very pleased to be selected as the preferred tenderer for the underground diamond drilling by Newmarket Gold across their three Australian mines,” Swick managing director Kent Swick said.

“Swick will deploy its state of the art, mobile drill rigs to these mines, supported by experienced crews and supervision.

“We believe we can add significant value to Newmarket Gold’s underground drilling over the short and long term as a result of our focus on safe, reliable production, lower overall costs and continuous improvement within our operations.”

When work begins on the contract, Swick’s rig utilisation will grow to 77 per cent, with 60 rigs operating out of its fleet of 78.

The company said its total order book now stood at approximately $220 million.

Swick shares were worth 27 cents each at the close of trade.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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