Pentium Hydro and Roy Hill Iron Ore sign drilling contract

Vysarn’s wholly-owned subsidiary Pentium Hydro says it has entered into a general works contract for dual rotary and reverse circulation water bore drilling services with Roy Hill Iron Ore in Western Australia.

Under this contract, Roy Hill may at any time over an initial period of two years (which can be extended by Roy Hill for a further year), submit a work request to Pentium to perform works such as dual rotary and RC water bore drilling services, minor civil earthworks and/or rotary air and conventional drilling services, at locations as instructed by Roy Hill.

Pentium has already received and accepted the first work request from Roy Hill for dual rotary drilling and construction dewatering production bores with depths of up to 100 m at the miner’s iron ore operation in Western Australia’s Pilbara region, with the estimated value of this work request being some A$2 million ($1.4 million).

Dependant on the timing of receipt of the purchase order and, subject to mobilisation of the rig prior to Christmas, it is expected this work request package based on the current scope would be complete within four to five months.

Pentium Managing Director, Sheldon Burt, said: “Pentium Hydro is delighted with the award of a contract with a client of Roy Hill Iron Ore’s standing. We are committed to building strong relationships and the development of these relationships is a core component of Pentium’s long-term strategy to be a leading hydrogeological water well service provider in Australia.”