Capricorn Metals has confirmed Way Electrical Pty Ltd will carry out the plant electrical installation at its Karlawinda gold project (KGP) in Western Australia following a competitive pricing process.

The contract is in the order of A$5 million ($3.6 million) and is in line with Capricorn’s budget estimate, it said.

This is the final significant construction contract for the build of the processing plant at Karlawinda.

Based on a 1.2 Moz reserve, Capricorn envisages a 12-year mine life at Karlawinda, with an annual production target of 110,000-125,000 oz of gold. The company plans to mine a single large, low strip ratio open pit and use a 3.5-4.0 Mt/y carbon-in-leach processing plant.

Development of the project is underway, with commissioning expected in the March quarter of 2021.

Alongside this contract award, the company said the manufacture of the ball mill for the KGP had been completed by CITIC in Luo Yang, China.

The mill components have been subjected to and passed all the required manufacture quality control inspections, and tests and are now in various stages of despatch for shipping to Australia, it explained.

With the major (and oversize) components due for departure on November 21, the estimated arrival in Port Hedland is December 10, allowing for the oversize mill components to get to the KGP by mid-December.

In addition to this, the steel pipe for the 40 km of lateral gas pipeline from the Goldfields Gas Pipeline (GGP) to the KGP power station arrived in Fremantle from Korea and has been delivered to site.

APA, the build-own-operator of the pipeline, has (in consultation with Capricorn) awarded the pipeline construction contract to McConnell Dowell, which is currently mobilising to site with a view to commencing construction in December 2020.

Once operational, the lateral pipeline from the GGP to KGP will transport around 3 Tj/d of gas for power generation at KGP.

The KGP power supplier, Contract Power Australia, has progressed fabrication of the power station building at the project, with the eight Cummins HSK78G, 2 MW gas generator units in transit from the US with expected delivery to the KGP site in early February 2021.

Lastly, the KGP open-pit earthmoving contractor, MACA, has commenced mobilising mining equipment to site. Early preparatory works have commenced including haul road construction and limited waste mining mostly to provide materials for surface water bunds and tailings storage facility construction.

The first waste rock blast of material in the Bibra stage 1 pit has been fired successfully, Capricorn said.