Tag Archives: Capital

Capital receives underground drilling boost at AngloGold’s Geita mine

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.”

Capital builds up mining fleet for Sukari gold mine work

Capital is well on the way to securing a suitable fleet to carry out the open-pit waste mining contract at Centamin’s Sukari gold mine, with additional trucks recently arriving in Egypt and payments “significantly progressed” for all major long lead equipment required to service the operation.

Equity proceeds from the recent $40 million share placing were received in late December 2020, facilitating these further payments, according to Capital.

The 120 Mt open-pit waste mining contract at Sukari will see Capital provide load and haul and ancillary services over a period of four years. At the same time, the existing drilling contract at Sukari has been extended to December 31, 2024, (from September 30, 2023) and expanded by nine additional blasthole rigs, bringing the rigs operating at Sukari to 24 in total.

Included in the long lead items are 17 Cat 785 dump trucks, seven blasthole drill rigs, three excavators, and all major ancillary support equipment including dozers, graders and water trucks. Capital said additional trucks had recently arrived in Egypt, supplementing the initial truck fleet that arrived during the December quarter of 2020.

Capital also said it has made substantial progress on several of the debt facilities contemplated in the capital raising prospectus related to the Sukari contract including:

  • Executing the $2.6 million vendor finance agreement with Epiroc with full draw down against the purchase of three new blasthole rigs;
  • Fully drawing down on the remaining tranches of the $10 million Macquarie facility following finalisation of the Sukari contracts and security registration in Egypt; and
  • The committed and available vendor finance facility with Sandvik for $8.5 million is expected to be used over the course of the March quarter against the purchase of four new blasthole rigs.

Jamie Boyton, Capital Executive Chairman, said it was pleasing to note that site activity was progressing well with the continued expansion of its extensive on-site facilities, “further asset arrivals and the recruitment of key personnel to prepare for the commencement of preliminary mining activity in late Q1 (March quarter) as planned”.

Capital bolsters Barrick Bulyanhulu work with laboratory, drilling contracts

Africa-focused mining services company, Capital, says it expanded its operations at Barrick Gold’s Bulyanhulu gold mine in Tanzania with the award of two new contracts for its drilling and geochemical laboratory services divisions.

The contracts include a five-year laboratory services contract for Capital’s MSALABS subsidiary, together with a two-year underground grade control drilling agreement.

Capital commenced operations at Bulyanhulu in February 2020, undertaking a complex deep hole delineation drilling program. The company’s execution of the program resulted in an expansion of services, with two underground rigs added to operations from May, it said. The new contract will expand the underground fleet at Bulyanhulu to four, using two rigs from the existing fleet and including the acquisition of a further two underground rigs.

MSALABS, meanwhile, will undertake initial laboratory design and deliver ongoing laboratory management and analysis services under the laboratory services contract. Analysis capabilities will include fire assay together with new Chrysos PhotonAssay technology that uses X-ray technology to determine the gold content of mineral ores more quickly and accurately than traditional methods.

The contract terms are expected to be finalised imminently for a five-year term, key personnel recruitment and training is now complete and initial commissioning processes are underway, Capital said, adding that the new contracts were scheduled to commence on December 1.

Stuart Thomson, MSALABS CEO, said: “We are excited to commence this new contract with Barrick to manage their on-site laboratory at the Bulyanhulu mine. The use of the ground-breaking new Chrysos PhotonAssay technology will significantly increase assay throughput at Bulyanhulu, while delivering a much faster sample turnaround time for Barrick.”

Capital’s Executive Chairman, Jamie Boyton, said: “We are very pleased to be expanding our services at the Bulyanhulu Gold Mine and continue our valued relationship with Barrick. It is particularly pleasing that our team’s successful execution of the initial deep hole drilling program has contributed to this expansion and we are now delivering multiple services at the site.

“This aligns to Capital’s growth strategy of expanding services with existing customers at established mine sites, with the laboratory services contract to contribute to an increase in the company’s non-drilling revenues.”