Dynamic Drill and Blast Holdings says it has entered into a services contract with Pilbara Resources Group (PRG) and been selected as preferred supplier to Carey Mining, resulting in the delivery of work across two separate resource projects (gold and iron ore) in Western Australia.
The services contract with PRG relates to the provision of drilling and blasting services at GWR Group Ltd’s Wiluna West iron ore project, where PRG is also a contractor. It will see DDB provide services from November for Stage 1 of the C4 iron ore deposit, part of Wiluna West.
The C4 iron deposit is 1.4 km long and contains a combined DSO hematite, JORC 2004 mineral resource estimate of 21.6 Mt at 60.7% Fe, comprising 18.5 Mt at 61.2% Fe indicated and 3.1 Mt at 58% Fe inferred. DDB’s contract relates to around 1 Mt of the 21.6 Mt resource, it said.
DDB has also been selected as preferred supplier by Carey for the provision of drilling services at the AngloGold Ashanti-owned Golden Delicious deposit, part of the Sunrise Dam operation.
It is estimated DDB will provide services from late December 2020 for a period of around 24 months, with DDB and the contractor working towards execution of the final form drilling contract.
The combined revenue from both services contracts once executed is estimated to be A$9-11 million ($6.6-8.1 million) and will be based on a fixed and variable pricing structure, DDB said. It will see the recently listed ASX company use up to four drill rigs, as well as around 20 personnel and ancillary equipment to deliver the required services.
As well as the new projects, DDB has deployed equipment and personnel to additional short-term projects, it said.
DDB Managing Director, Mark Davis, said: “We are pleased to be diversifying our client base, adding two longer-term production projects, including one in the precious metals sector. These contracts complement our current operations, which include long-term mining projects and specialised civil works, which will support the sustainable growth of the business.”