The contract follows Macmahon’s 2019 acquisition of GBF, which has been providing underground mining services at the Deflector mine since 2016.
The new mining services contract is slated to run until April 2025 and involves underground development, ground support and production activities including the provision of all labour and mobile mining equipment.
Macmahon CEO and managing director Michael Finnegan said: “We are very pleased to have won this tender and to be working with Silver Lake Resources at Deflector.
“This new contract is an important milestone in our strategy to expand our underground business and is a clear demonstration of the benefits we are now realising from the GBF acquisition.
“Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macro environment. We look forward to continuing to support the development of Deflector, and to achieving further scale in the underground market.”
The Deflector Mine is a shallow narrow vein, high-grade gold and copper underground mine located in the southern Murchison region of WA.
The mine commenced gold production in May 2016.
As an engineering contractor, Macmahon provides mining services throughout Australia and South-East Asia.
In August last year, the company secured a $23m mining services contract at the Coburn mineral sands project in WA.