Tag Archives: Adaman Resources

Mitchell Services enters new drill and blast territory at Kirkalocka

Explosives and blasting, Mineral project development, Mining equipment, Mining project news, Mining services, Precious metals, , , , , , ,

Australia-listed Mitchell Services has entered the drill and blast production drilling market with the award of a new contract at Adaman Resources’ Kirklalocka gold project in Western Australia.

The circa-A$33 million ($23 million), five-year contract, with mining services provider SMS Innovative Mining Pty, will see Mitchell initially deploy two rigs to service the drill and blast contract with a third rig to be provided in late 2019.

Mitchell Services CEO, Andrew Elf, said: “The multi-year, multi-rig contract award further strengthens the quality of our revenue base and will result in the company now playing a direct role in the production of the mine. This is a service offering that we are strategically focused on growing and the award of this contract provides an ideal platform to do so. It also continues to expand our footprint within Western Australia adding both service and geographic diversification.”

Mitchell Group Holdings, an entity associated with Mitchell Services Executive Chairman, Nathan Mitchell, owns a 33% stake in the Kirklalocka gold project, with SMS Mining Services owning another 33%.

Back in October, SMS Mining Services secured preferred contractor status for Kirkalocka, with the four-year contract consisting of open-pit mining services including load and haul, drill and blast, and mine development. SMS said at the time drilling was underway to extend the mine life beyond the current six years.

Since then, MACA has won a contract to install a new SAG mill and refurbish an existing mineral processing plant at Kirkalocka.

Adaman’s Kirklalocka gold project to be powered by LNG

Environmental, Mineral project development, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , ,

Adaman Resources’ owned Kirkalocka gold project, in Western Australia, is set to be powered by LNG after the asset owner and EVOL LNG signed a agreement.

The long-term arrangement, between EVOL and Adaman Resources’ wholly-owned subsidiary Kirkalocka Gold SPV Pty Ltd, will see EVOL LNG fuel Zenith Energy’s 14.5 MW power station, with supply planned to commence from September 2019.

The gold mine, around 70 km south of Mt Magnet in the mid-west region of Western Australia, is set to restart operation after more than a decade, with the mine’s new owners refurbishing the processing plant and increasing its capacity to over 2.2 Mt/y.

EVOL LNG and Wholesale Manager, Nick Rea, said the use of LNG as an alternative to diesel will help minimise the mine’s carbon emissions.

“LNG produces 25% less CO2 emissions than diesel, and during the initial six years of operation, the mine will avoid 50,000 t of greenhouse gas emissions by fuelling its power station with LNG instead of diesel. This is the equivalent of keeping around 3,000 cars off the road,” Rea said.

EVOL, part of Wesfarmers Chemicals, Energy & Fertilisers, will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine, it said. “The facility will use EVOL LNG’s modular design which allows for fast installation and expandability to suit the mine’s growing energy requirements,” the company added.

Adaman Resources’ Chief Executive Officer, Craig Bradshaw, said EVOL LNG will provide environmental, financial and economic benefits for the company.

“Utilising LNG as an alternative to diesel-fired generation will significantly reduce our energy costs and exposure to volatile diesel prices. Based on the current diesel price, we estimate our energy costs to be reduced by more than A$13 million ($9 million) during the first six years of operation,” he said.

EVOL’s Rea said Kirkalocka was the company’s third major contract in the mid-west in recent years; he sees huge potential for growth in this region.

“The scarcity of gas pipelines and absence of grid power would otherwise force off-grid mines to use diesel for power generation, but we are able to provide a much better solution with LNG. It’s clean, safe, reliable and lower cost than diesel.

“We have proven ourselves to the mining industry over the last decade, with seven mine sites now powered by EVOL LNG,” he said.

MACA to refurbish Adaman’s Kirkalocka gold project in Western Australia

Mineral project development, Mining equipment, Mining maintenance, Mining services, Precious metals, , , , ,

Contractor MACA has wrapped up a strong year with a contract award from Adaman Resources at its Kirklalocka gold project near Mt Magnet in Western Australia.

The contract, secured through its subsidiary MACA Interquip, includes installation of a new SAG mill and refurbishment of an existing mineral processing plant at Kirkalocka. MACA expects to book some A$28 million ($20.2 million) for the works, which will commence in February with a duration of eight months. Some 40 personnel are expected to be required.

MACA said the contract award follows early involvement with the Adaman management team, enabling advancement in the design process and the submission of long-lead items. Commencement of the project remains subject to finalisation of Adaman’s project finance documentation.

Operations Director Geoff Baker said MACA Interquip has an excellent record of successful refurbishment delivery, hence the contract award.

“Our alliance with NCP International, who manufacture grinding mills and install complete comminution circuits globally, as an installation partner, will provide MACA Interquip with further exposure as an integrated mineral processing supplier,” he said.

“The recent contract awards for MACA Interquip demonstrates the success of the MACA strategy to diversify its services within the resource industry.”

This new contract ensures a strong order book for MACA Interquip for 2019 when added to the letter of intent for the refurbishment of the gold processing plant for Echo Resources. Other recent and ongoing work on processing plants includes the Savannah nickel project for Panoramic Resources (pictured) and the Degrussa copper project for Sandfire Resources.

Back in October, SMS Mining Services, which owns a 33% stake in Adaman, secured preferred contractor status for Kirkalocka, with the four-year contract consisting of open-pit mining services including load and haul, drill and blast, and mine development. SMS said at the time drilling was underway to extend the mine life beyond the current six years.

SMS Mining Services receives A$640 million of new gold project contracts

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Western Australia-based contractor SMS Mining Services has been named as the preferred mining contractor for both Capricorn Metals’ Karlawinda gold project near Newman and Adaman Resources’ Kirkalocka gold project near Mt Magnet.

The two contracts are worth A$640 million combined – A$420 million ($301 million) for Karlawinda and A$220 million for Kirkalocka – and push SMS’ contract book past the A$1 billion mark, according to SMS Managing Director Danny Sweeney.

Sweeney added that the company also has contracts in the pipeline extending out to 2027, and a remaining tender pipeline of over A$1.2 billion.

The Karlawinda gold contract is for a duration of eight years and 10 months, representing the entire life of mine. It will consist of open-pit mining services including load and haul, drill and blast, and mine development.

SMS will mobilise new and existing equipment, and deploy significant technology and operational initiatives, the company said.

“We are excited to be part of Capricorn Metals story. We look forward to forging a successful long-term partnership and supporting the company in bringing the Karlawinda gold project into production in 2019,” Sweeney said.

Formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming months. Contract works are due to start in the June quarter of 2019.

A feasibility study on development of the Bibra deposit at Karlawinda was completed in October 2017. This envisaged a a single large open-pit deposit feeding a 3 Mt/y CIL processing plant, producing approximately 100,000 oz/y of gold at an average all-in sustaining cost of A$1,025/oz over the initial mine life.

Meanwhile, the company has also secured preferred contractor status for Adaman’s Kirkalocka project, 70 km south of Mount Magnet. SMS owns a 33% stake in privately-owned Adaman Resources as part of its equity strategy of supporting small and mid-tier miners to enter production.

The four-year contract with an option to extend will consist of open-pit mining services including load and haul, drill and blast, and mine development. Drilling is currently is underway to extend the mine life beyond the current six years.

Again, formal contract award is subject to final contract negotiations which SMS expects to finalise in the coming weeks. Contract works are due to start in late 2018.