Award of $16 million EPC Contract

Carosue Dam

25 February 2013

Award of $16 million EPC Contract

Carosue Dam Tertiary Crushing Project

  • Notice of award for the Carosue Dam Tertiary Crushing Project EPC Contract
  • Contract price approximately $16 million with 40/60 split in revenue for FY13 and FY14
  • Immediate start, completion December quarter 2013

GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) is pleased to advise that it has been issued with a notice of contract award by Saracen Mineral Holdings Limited (ASX:SAR) (Saracen) in relation to the engineering, procurement and construction (EPC) contract for the Carosue Dam Tertiary Crushing Project near Kalgoorlie in Western Australia.

The contract price is approximately $16 million, with formal award being subject to the preparation and execution of formal contract documentation which is expected in the next 4 weeks. The contract price has been determined on a lump sum basis and GR Engineering will commence design work immediately with project completion scheduled in December quarter, 2013. The contract revenue split for FY13 and FY14 is estimated as 40/60. This project represents a key component of Saracen’s development plan to expand the Carosue Dam Process Plant throughput capacity to 3.2 Mtpa.

Joe Ricciardo, Managing Director of GR Engineering, said in relation to the notice:

“GR Engineering is pleased to have been awarded the EPC Contractor for the Carosue Dam Tertiary Crusher Project. It is particularly pleasing given that most of our senior personnel were previously responsible as JR Engineering for the original design and construction of the very successful Carosue Dam Gold Processing Facility in 2000/2001. Our experience and track record in successful project execution has been recognised by Saracen together with our extensive expertise and experience in brownfields projects.”

Ends.