GR Engineering enters EPC contract with Pantoro for Norseman gold project processing plant

GR Engineering Services Ltd has entered into a contract with Pantoro Ltd for the engineering, procurement and construction (EPC) of a new 1 Mt/y processing plant for its fully-owned Norseman gold project. It had already received a Letter of Intent from Pantoro for these works. The contract sum is A$59.5 million. Feed for the plant in Stage 1 will be sourced from the Cobbler, Scotia, Gladstone & OK mines.

Commenting on the award of the contract, Geoff Jones, Managing Director stated: “GR Engineering is pleased to have been awarded the EPC contract for the project. We have worked collaboratively with Pantoro over the past two months and look forward to continuing to engage closely with Pantoro to deliver safe and successful outcomes for the project. GR Engineering continues to build its contracted pipeline of work across a diverse commodity base and increase its revenue and earnings visibility for FY22.”

The Norseman gold project is located in the Eastern Goldfields of Western Australia, at the southern end of the highly productive Norseman-Wiluna greenstone belt. The project lies approximately 725 km east of Perth, 200 km south of Kalgoorlie, and 200 km north of Esperance. The current Mineral Resource is 4.4 Moz of gold (100% basis).

The Norseman DFS details an initial seven year mine plan with an average annual production of 108,000 oz of gold and producing 610,000 oz during the seven year initial life. The mine plan entails large open pits at Scotia Mining Centre (active from commencement of operations), Cobbler (active from commencement of operations) and Gladstone Everlasting (commencing in the third year of operations). In addition, smaller pits at Princess Royal and Maybelle are planned to be mined during the course of the project. Underground mines are planned at OK (active from commencement of operations), Scotia (commencing following open pit mining) and St Patrick’s (commencing in the fourth year of operation). The production sources are to be transported to a central processing plant at the existing mill site.