02/10/2020 - 12:00

Wiluna contracts GR Engineering for $26m

02/10/2020 - 12:00

Bookmark

Save articles for future reference.

GR Engineering Services has secured works on Wiluna Mining Corporation's namesake gold operations in Western Australia, under a $25.7 million contract.

Wiluna contracts GR Engineering for $26m
GR Engineering will complete work on Wiluna Mining's namesake gold project in WA. Photo: Wiluna Mining Corp

GR Engineering Services has secured works on Wiluna Mining Corporation's namesake gold operations in Western Australia, under a $25.7 million contract.

The work relates to a concentrator development program for the Wiluna goldmine, in WA’s Yilgarn Craton.

The staged sulphide development, upon completion, will see Wiluna transition from its current production profile – of 62,000 ounces of gold per annum – to 250,000ozpa by early 2024.

GR is expected to begin contract works in early December.

Managing director Geoff Jones said the award of the contract enhanced GR’s reputation as the leading gold EPC contractor in Australia.

Wiluna executive chair Milan Jerkovic said the company had made significant progress on its sulphide development plan.

“A significant hurdle was met when the board of directors approved the construction of the concentrator and the appointment of GR Engineering to undertake the EPC contract for construction,” he said.

“The challenge now is to deliver on stage one and scope out the optimum size for stage 2, given the considerable size of the Wiluna orebody.

“This will take shape in the feasibility study, which is currently being undertaken.”

Mr Jerkovic said the company was halfway through its 24-month strategy to “turn the company around” and redevelop the Wiluna project.

“The sheer size of Wiluna, which is now the seventh-largest gold district under single ownership in Australia, based on JORC Mineral Resources, throws up challenges,” he said.

“But nothing worthwhile comes easy, and we believe the prize for shareholders of developing this project in a systematic, thorough and staged manner to become a tier 1 asset in a tier 1 jurisdiction will be worth it.”

The Wiluna project’s mineral resource ranges from 143 million tonnes at a grading of 1.6 grams per tonne for 7.3 million ounces, to 71mt at 2.2 g/t for 5moz.

Shares in Wiluna Mining were up 2 per cent to trade at $1.80 at 1:08pm AEST, while GR Engineering shares were up 0.5 per cent to trade at $1.03.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options