Mitchell Services wins $33m drill and blast contract for Kirkalocka Gold Project WA

In behalf of Adaman Resources, SMS Innovative Mining has awarded a $33 million five-year contract to Mitchell Services for drill and blast services at the Kirkalocka Gold Project located approximately 75 kilometres south of Mount Magnet in Western Australia’s mid-West region.

For this project, Mitchell Services will initially deploy two rigs on site at the beginning of the contract execution and a third rig will be added later in 2019.

“The drill and blast contract win is rewarding for various reasons. The multi-year, multi-rig contract award further strengthens the quality of our revenue base and will result in the Company now playing a direct role in the production of the mine,” Mitchell Services Chief Executive Officer Andrew Elf said.

Project location (source: Adaman Resources)

Adaman Resources acquired the Kirkalocka Gold Project last year and has since completed a bankable feasibility study (BFS) as well as secured funding of about $55 million ahead of the planned operation restart later this year.

The Kirkalocka Gold Project restart will include refurbishment of the existing processing plant, installation of a new SAG mill to increase capacity to 2.5Mtpa, grade control drilling, pit dewatering and expansion of the mine village.

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Source: Australian Mining; Mitchell Services; Adaman Resource; International Mining; Mining Magazine