GR Engineering Services looks like being rewarded for all of its hard work in Papua New Guinea (PNG) with the engineering, procurement and construction (EPC) contract for Geopacific Resources’ Woodlark gold project.
The ASX-listed mine developer says it has issued GR Engineering with an EPC letter of intent for the 2.4 Mt/y carbon in leach (CIL) process plant (modelled above), tailings line and other supporting infrastructure at the PNG project.
The final EPC contract is expected to be in the form of a guaranteed maximum price and will be signed following agreement of the final terms and conditions, Geopacific said.
“The company has selected an EPC contracting structure to de-risk the largest component of the capital expenditure requirement. Other remaining establishment capital costs also include site-based infrastructure and a mining fleet,” the company added.
In the meantime, Geopacific says it may instruct GR Engineering to commence an early works program to procure tenders and pre-order long lead time items such as the SAG and ball mills.
The processing plant will be constructed between the Kulumadau and Busai pits which are around 4 km apart. The project currently has 1 Moz in gold reserves, with significant upside from the 600 km² exploration licence, Geopacific said. The grade for the first five years is over 1.5 g/t Au with all-in sustaining costs estimated at A$866/oz ($586/oz).
GR Engineering is currently finishing off work on a crusher replacement project for Ok Tedi Mining in PNG.
Geopacific Managing Director, Ron Heeks, said: “GR Engineering has a strong reputation in successfully designing and constructing processing plants on time for a guaranteed maximum price. Geopacific is confident that their recent experience in PNG and strong track record in constructing similar projects will greatly de-risk the construction of Woodlark. We look forward to finalising the EPC contract, and advancing the development of Woodlark.”
GR Engineering Managing Director, Geoff Jones, said: “Our clients are increasingly seeking certainty and a track record of performance and GR Engineering has been able to demonstrate this to Woodlark, including by reference to its successful project outcomes in the turnkey design and construction of mineral processing plants in the gold sector.”