Eastern Goldfields has awarded a A$12.5m ($9.1m) contract to Australian engineering, consulting and contracting firm GR Engineering Services (GRES) to refurbish the Davyhurst Gold Processing Plant.

The work will follow completion of a study by GRES. Eastern Goldfields will manage some of the work, which will include tails line installation, concrete repairs and repainting of structural steel.

The work is expected to start with immediate effect and slated for completion during the first quarter of 2017.

"We expect to be pouring gold early during the first quarter of 2017."

Eastern Goldfields executive chairman Michael Fotios said: “The award of this contract to GRES is a major milestone in the steps required to bring the Davyhurst Project back into operation.

“We expect to be pouring gold early during the first quarter of 2017. The award of this contract, together with the drilling we have conducted on our large tenement footprint, augers well for the future of the company.”

The open-cut mining operation Davyhurst is located 120km north-west of Kalgoorlie. The area hosts some large deposits within the project area and potential remains for discovery of new gold deposits.

Mineralisation on the eastern side of the Davyhurst project area is developed in a series of silica biotite pyrite altered shears within a tholeiitic to Hi MgO basalt sequence.

On the western side, the Waihi tend extends some 30km from Two Gum Dam prospect in the south.