Under the agreement, MACA will mine 180,000t of ore and associated waste from the Wolverine and Gambit West pits. The agreement in relation to bulk earthworks is also near signing with MACA and will take the total value to A$10 million. Waste material will be used to construct the tailings storage facility and other surface infrastructure. The contractor will clear the processing plant site and construct internal road access.
This mining and bulk earthworks agreements will form part of the Sinosteel MECC lead contractor agreement signed on December 19, 2016.
Mining will be undertaken in a single campaign, with all ore stockpiled ahead of the three-year pilot plant phase.
George Bauk, Northern Minerals’ managing director and CEO, said: “Following the board approval of the Browns Range pilot plant, the appointment of MACA as our mining partner ensures that everything will be in place ahead of the plant installation in late 2017.”