Under the deal, worth an estimated A$300 million (US$234 million), NRW will perform open-pit mining, including drilling and blasting of four pits over six years. The contractor will begin with site workforce of 160 and increase that to 200.
With a six-year lifespan, Dalgaranga – which is set to come online in March next year – is projected to produce 100,000 ounces annually at an AISC of $1,000/oz. Additionally, the potential exists to extend the mine’s life thanks to discoveries made near the mine including the Sly Fox discovery.
“NRW is a highly respected mining contractor, with the mining experience required for the project with all key personnel and equipment available now, ensuring that we will be able to commence mining in March 2018 in accordance with the development plan,” managing director Mike Dunbar said.
The road to mining start has been long for Gascoyne; it first acquired the Murchison region project and its surrounding exploration tenements in 2012 from a private seller.
Dalgaranga’s JORC measured, indicated and inferred resources total 31.1Mt at 1.3 g/t for 1.32 million ounces of contained gold.