MSALABS, a global provider of geochemical laboratory services for the exploration and mining sectors, has cemented a major, five-year new contract with Nevada Gold Mines in the US that will see the majority-owned subsidiary of Capital operate a state-of-the-art hybrid laboratory on the gold miner’s behalf. The lab will incorporate both Chrysos PhotonAssay™ technology and traditional fire assay methods as well as full multi-element assaying capabilities.
This represents the largest contract award in MSALABS’s history, anticipated to generate some $140 million over the five-year term, with annual revenues of circa-$30 million once fully operational. Capital expenditure for the project is expected of circa-$7 million in 2024.
Phase one of the project will commence towards the end of the first half of 2024 with the commissioning of two Chrysos PhotonAssay units and a capacity of 80,000 samples per month. Phase two will commence at the end of 2024 with the third Chrysos PhotonAssay unit along with the full geochemical laboratory bringing capacity to 120,000 samples per month as well as associated multi-element testing.
The Nevada Gold Mines contracts represents a significant beachhead for MSA in the US market, entrenching the company’s presence in the Americas, both operationally given the full suite of services across preparation, PhotonAssay, fire assay and multi-element chemistry at a major operation, and also geographically, expanding its footprint in the Americas from its multiple laboratories across Canada and South America, it said.
It also comes alongside Capital’s recently-awarded drilling contract at NGM, which encompasses a wide array of drilling services including underground reverse circulation and diamond, both surface and underground, in addition to Capital announcing former BME and Orica team member Aaron Austin as CEO of the Americas.
Stuart Thomson, MSALABS CEO, said of this contract award: “We are thrilled to have been awarded this material contract, adding to our existing PhotonAssay contracts with Barrick at Bulyanhulu and Kibali. This contract reflects not only the proven advantages of the innovative PhotonAssay technology but also the trusted capabilities of MSALABS across traditional fire assay and multi-element analysis.
“This state-of-the-art hybrid laboratory will be the first of its kind in the USA and, with MSALABS’ holistic approach to laboratory design, will help drive productivity improvements to the Nevada Gold Mines complex.
“These three new PhotonAssay units mark the start of a broader partnership agreement with Barrick Gold, with trials underway for a possible 10 further PhotonAssay units by the end of 2025 across multiple of Barrick’s other operations.”