Argonaut Gold says it has executed a fixed bid engineering, procurement, construction and commissioning (EPC) contract with Ausenco Engineering Canada for the construction of the Magino open-pit gold processing facility and other parts of the Magino construction project, in Ontario, Canada.
The EPC contract totals around 40% of Magino’s initial capital estimate of between $360-$380 million, the company said.
A 2017 feasibility study on Magino, a past-producing mine, outlined a 10,000 t/d operation with average annual production of around 116,000 oz of gold over a 17-year mine life (including three years of ore processed from a low-grade stockpile). This same study stated open-pit mining operations would use a fleet comprised of 16 m3 front shovels, a 13 m3 front-end loader and 140 t haul trucks.
Pete Dougherty, President and CEO of Argonaut Gold, said: “Ausenco is an industry leader in the field of building high-quality processing facilities in the mining industry and recently did an excellent job with the Moose River project in Nova Scotia, Canada.
“We are excited for Magino to be one of the first projects entering construction in the current gold price environment, as we feel first mover advantage is critical when securing a construction team of the highest quality and with a superior track record.”
Argonaut recently posted the first phase of financial assurance with the province of Ontario and expects the Magino project Closure Plan to be filed by the province of Ontario in January 2021, which will allow for construction to commence.