Capital Drilling wins Bonikro deal

Capital Drilling has secured a five-year contract for a full range of mining services to Allied Gold’s Bonikro gold operation in Ivory Coast
Capital Drilling wins Bonikro deal Capital Drilling wins Bonikro deal Capital Drilling wins Bonikro deal Capital Drilling wins Bonikro deal Capital Drilling wins Bonikro deal

Capital Drilling currently owns and operates a fleet of 92 drilling rigs

Capital Drilling has signed binding agreements with the gold miner for the provision of a full range of mining services, and, additionally, it has made a strategic investment of US$3 million in Allied.

Under the deal, the contractor will perform drill and blast, load and haul, dewatering and grade control services.

It will also assume management control of Bonikro's heavy mining equipment fleet, which includes 16 mining dump trucks, four mining shovels and other associated mining equipment. Capital will supplement the fleet with an excavator, three bulldozers and auxiliary equipment at its own cost.

"[This provides us] with a unique opportunity to enter into a contract of this nature with modest immediate capital requirements," the company said.

"Together with the three new blasthole rigs to be acquired, near term capital commitments are expected to total approximately US$8 million, apportioned between the drilling fleet (US$4 million) and the ancillary earth moving equipment (US$4 million)."

Capital will be taking full responsibility for the fleet's upkeep and maintenance.

Work has commenced already at the mine site; senior staff from the contractor arrived on-site in September and is now working with Allied management to refine the Bonikro mine plan. That was after small team of personnel first came on-site in July.

"We are excited to embark on this new phase for Capital Drilling and to commence our first comprehensive mining services contract," executive chairman Jamie Boyton said.

"We can now offer clients a completely integrated mining service from initial exploration drilling right through to extraction and delivery of ore to the mill."

Bonikro has historically produced over one million ounces of gold, Capital said.

Mauritius-based Capital Drilling currently owns and operates a fleet of 92 drilling rigs with established operations in Botswana, Burkina Faso, Ivory Coast, Egypt, Kenya, Mali, Mauritania, Nigeria and Tanzania.