Para Resources Inc has entered into a Services Agreement with Clark Construction Group, LLC, a Maryland, limited liability company which will provide contract mining services at its underground Gold Road mine in Oatman, Arizona. The contract is initially on a “time and materials” basis but will evolve into a Unit Pricing contract, which is presently being negotiated. The Services Agreement is an interim step to ensure work at the mine starts immediately. Clark has already mobilised project management to site, and initial equipment and operational crews are expected to arrive by the end of November.

Work presently being conducted at Gold Road includes upgrading the ventilation system to handle higher levels of production, upgrading of the main decline and haulage route to manage larger sized trucks, rehabilitation of secondary escape ways and remediation of recently encountered ground control issues. In parallel, maintenance, testing, repair, and general cleanup of the mill is being conducted. The mill is expected to be in functional condition by the end of 2018. Mineralised rock production is expected to commence in January 2019 with re-commissioning of the plant with first gold pour anticipated in February 2019.

The start of production at Gold Road has been delayed by 45-60 days due to unforeseen ground conditions resulting from the dewatering of the lower levels of the mine. Management determined that the conditions were un-safe and need to be improved before mining can begin in the lower levels of the mine.

Geoff Hampson, Para’s CEO states, “We are very pleased to have Clark Construction Group as our mining contractor at Gold Road. As one of the most experienced and respected building and civil construction firms in the United States, they bring extensive experience and knowledge to our operations and capacity. Having Clark on site and ramping up the people and equipment needed to start mining is a critical milestone in our production ramp up.”