More than a year after signing a memorandum of understanding (MoU) with a subsidiary of Emerald Resources to supply equipment and contract mining services at the Okvau gold project in Cambodia, MACA has been confirmed as the mining contractor.
As part of the new agreement, ASX-listed MACA is to supply earthmoving equipment and conduct contract mining services at Okvau.
Emerald said: “The signing of the mining contract follows extensive work with MACA around scheduling of pre-production and production mining.”
The company added: “It represents a positive step in the development of the Okvau gold project by adding a high level of confidence in the execution of the mining schedule with the highly experienced MACA earthmoving team.”
The contract provides for the use of new fit for purpose earthmoving equipment with an onsite expatriate management team experienced in similar international operations, according to Emerald.
MACA’s proposed scope of work includes site preparation, drill and blast, load and haul and maintenance works. This equates to around $230 million in revenue over the seven-year term.
Mobilisation activities are expected to commence in August ahead of pre-production mining in October 2020. First gold is expected in the June quarter of 2021.
Last month, Outotec booked a €13 million ($14.2 million) order from the project, with the Finland-based company set to deliver an Outotec HIGmill® high intensity grinding mill, a SAG mill, TankCell® flotation cells, an OKTOP® Conditioner, thickeners and spare parts to the project.
Emerald Managing Director, Morgan Hart, said: “We are extremely pleased to have appointed MACA as the mining contractor for the Okvau gold project operations which continues the existing relationship between the Emerald and MACA management teams. The signing of the Mining Contract follows a thorough and collaborative process with both teams in finalising the mining schedule for the development and operations of the Okvau gold project.”
He said the sealing of this contract gave the company “greater confidence” to achieve its goal of becoming the first modern large-scale Cambodian gold producer by the June quarter of 2021.
A definitive feasibility study on the project displayed an ore reserve of 14.3 Mt at 2 g/t Au for 900,000 oz of gold in a single open pit with a waste:ore ratio of 5.8:1. The life of mine average annual production came in at 106,000 oz with an all-in sustaining cost of $754/oz.