Recently revitalised Eastern Goldfields plans to begin producing gold at its Davyhurst operation by March next year, with the company awarding a $12.5 million contract to GR Engineering Services to bring the nearby processing facility out of care and maintenance.
GR Engineering will refurbish and recommission the 1.2 million tonne per annum processing facility, which has been inactive since 2008.
The facility will be used to process ore from Eastern’s Davyhurst open cut gold mining operation located north of Kalgoorlie.
GR Engineering will provide engineering, procurement and construction services under the contract, while Eastern will manage some of the work comprising tails line installation, concrete repairs and repainting of structural steel.
Work under the contract will begin immediately and is expected to be finished by the first quarter of next year.
“The award of this contract to GR Engineering is a major milestone in the steps required to bring the Davyhurst project back into operation,” Eastern chairman Michael Fotios said.
“We expect to be pouring gold early during the first quarter of 2017.
“The award of this contract, together with the drilling we have conducted on our large tenement footprint, augurs well for the future of the company.”
Eastern broke nearly eight years of dormancy in February when it initiated a capital raising and put plans in motion to have its shares reinstated on the ASX.
GR Engineering shares were 1.6 per cent lower to $1.52 each, while Eastern shares were 3.9 per cent higher to 39.5 cents each, at 10:30am.
