MACA has signed a memorandum of understanding (MoU) with Renaissance Minerals, a subsidiary of Emerald Resources, for drill, blast, load and haul services, utilising 100t-class dump trucks.

Emerald said it views the signing of the MoU as a positive step in the development of the Okvau project; however, the contract is still subject to a final investment decision by its board of directors. The company is currently in discussions with several financiers for funding for the project.

The initial term of the mining contract will be aligned to the current life of mine (LOM) of seven years, with an option to extend. MACA said this equates to approximately US$220 million in revenue.

The definitive feasibility study, published in 2017, confirmed the initial LOM, as well as the production of an average of 106,000oz of gold per annuum from a single open pit, with ore processed through a plant utilising a single-stage crushing circuit and SAG mill, sulphide flotation, regrind mill followed by conventional cyanide leaching.

MACA managing director Chris Tuckwell added: "MACA looks forward to assisting Emerald to develop its highly robust Okvau gold project and to continuing the strong working relationship we have developed over many years and across many quality successful projects, with the board and management of Emerald.

"MACA will also apply the experience we gained in establishing both a foreign subsidiary and starting a new mine whilst working in Brazil over the last four years."

Emerald Resources' managing director Morgan Hart said: "The board and management of Emerald have worked closely with the team at MACA over the past 20 years in a multitude of successful operations and are very pleased to continue the relationship on the Okvau gold mine development."