SRG Global has been awarded a term contract with Pit N Portal Mining Services to provide specialist production drill and blast services and explosives supply at Red 5 Ltd’s Great Western gold mine in Western Australia.
The term contract is expected to start immediately for an initial 12-month term.
A satellite deposit located around 55 km from Red 5’s Darlot gold mine and processing facility, Great Western comes with a measured, indicated and inferred resource of 870,000 t grading 2.5 g/t Au for 70,300 oz of contained gold. The maiden proven and probable reserve totalled 437,500 t at 2.5g/t Au for 35,424 oz of contained gold.
Based on a proposed mining rate of between 30,000-40,000 t/mth of ore, the open pit is expected to be completed over a period of around 13 months, with plans to then access the underground orebody via a portal at the base of the pit, Red 5 said at the time.
In addition to the work on Great Western, SRG Global was also awarded a new three-year contract (with option for a further two years) with GFG Liberty OneSteel to provide engineered access solutions at the Liberty Steelworks site in Whyalla, South Australia.
David Macgeorge, Managing Director of SRG Global, said: “We are very pleased to have secured these two term contracts, adding to our recurring annuity earnings.
“The Pit N Portal contract was specifically targeted as it builds upon our mining services portfolio of high-quality growth commodities whilst diversifying SRG Global’s customer base.”