Mining service company Capital has been awarded two new three-year contracts at AngloGold Ashanti’s Geita gold mine in Tanzania.
Included in these contracts is the continuation of surface delineation and open-pit grade control drilling services, plus underground grade control and delineation drilling, with an expanded scope for underground drilling activities.
The award, Capital says, is subject to final contract execution and relevant government approvals. Both contracts are due to commence on April 1 and are anticipated to generate revenues of $65 million over the contract term.
The underground contract will use nine rigs, including five from the existing fleet together with an additional four new rigs, which have been secured and are currently in transit to the site. The surface delineation contract will use the existing fleet of five rigs.
Capital has been providing drilling services at Geita since 2006.
Jamie Boyton, Executive Chairman, said: “The awarding of the contracts at the Geita Gold Mine maintains our long-standing relationship with AngloGold Ashanti and is in line with our strategy of focusing on long-term mine site contracts with premier clients, underpinning the sustainability of our business. The contracts, which have been expanded from the previous contracts, reflect the Capital team’s excellent operational performance in safely delivering drilling services at the site since 2006.”