GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) is pleased to announce that it has entered into an engineering, procurement and construction contract (Contract) to design, construct and commission the mineral processing plant and certain infrastructure associated with Dacian Gold Limited's (DCN:ASX) (Dacian Gold) Mt Morgans Gold Project (Project).
Entry into the Contract follows the Company's announcement on 6 March 2017 of the award of a letter of intent in relation to the Project. The Contract is being undertaken on a guaranteed maximum price basis, which has been agreed at approximately $107.1 million.
GR Engineering's scope of work involves the design and construction of a new 2.5Mtpa carbon-in-leach treatment facility and certain supporting infrastructure for the Project, located 25km south-west of Laverton in WA. Work under the Contract has commenced, with completion and first gold production scheduled to occur in the first quarter of calendar year 2018.
Commenting on the Contract, GR Engineering's Managing Director, Mr Geoff Jones, said:
"Entry into the Contract following award of the letter of intent provides certainty in relation to the Project and supports a strong start to FY18 by GR Engineering. With site mobilisation imminent, we look forward to continuing our work with Dacian Gold to deliver safe and successful outcomes for the Project."
ASX Release 19 April 2017
In an exclusive interview, Dacian Executive Chairman Rohan Williams speaks with Business Review Australia and discusses how the company has found success in Western Australia in this new project, which will enable the company to become a new-mid tier gold producer in the country, with production scheduled for Q1 in CY2018.
See the recent feature:
- Business Review Australia
- Business Review Australia Profile -Australia's gold mining resurgence
To learn more about the Mt Morgans Gold Project, click here.