Dacian Gold has awarded a mining services contract for its Mt Morgans gold project in Western Australia (WA) to Macmahon Contractors.
The contract for the Jupiter open pit marks the final contract before production begins at the project in March next year.
Under the terms of the contract, Macmahon will offer services for an initial term of 60 months.
The contractor has a 31-month extension option.
Dacian Gold executive chairman Rohan Williams said: “We are on the countdown to production and cashflow. Project construction is progressing rapidly, with the CIL treatment plant now over 75% complete, underground mining 743m ahead of schedule and eight drilling rigs operating around the site.
“And now, we have secured Macmahon as the open pit mining contractor, with mining at Heffernans to start this month.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
“With a production rate of 200,000oz a year, Mt Morgans will be the biggest gold mine to come online in Australia for six years.”
The company is expected to begin open-pit mining later this month.
The first ore will be mined from the Heffernans Hill area, where grade control drilling is in progress.
In October, Dacian mined first ore at Mt Morgans’ Beresford underground, which forms part of the 1.6Moz Westralia mineral resource.