Capricorn Metals has appointed GR Engineering Services (GRES) as the preferred tenderer to undertake the design and construction of the processing plant for the Karlawinda Gold Project in Western Australia.

The company’s scope of works will include engineering, procurement and construction (EPC) for a 3 million tonne per annum (Mtpa) carbon-in-leach processing plant as well as associated infrastructure at the mine - located in the Pilbara region, 65 kilometres south east of Newman.

GRES has been engaged under a letter of intent to begin early works at the site before the finalisation of the EPC contract - which is expected to be valued at $93.1 million.

Capricorn is currently working on a final project decision for the Karlawinda Gold Project and is aiming for first gold production by September 2019.

Major construction activities are expected to begin in September 2018.

“The Capricorn team are looking forward to working closely with GR Engineering as we move towards a final project development decision by mid-year with the aim of first gold production in the September Quarter of 2019,” Capricorn metals Executive Chairman Heath Hellewell said.

The Karlawinda Gold Project is expected to have a production of 100,000oz of gold a year once development is completed.

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Source: Australian Mining, ASX