Perenti subsidiary, Barminco, says it has been awarded a 12-month contract extension at Newcrest Mining’s Red Chris mine in British Columbia, Canada.
Since June 2021, Barminco has continued to progress the development of an underground exploration decline, an essential first stage of works that will provide a platform for future underground exploration activities, and which may also be used to support access to potential block cave workings.
This contract extension enables Barminco to continue underground development works and is expected to deliver approximately A$90 million ($60.4 million) of revenue over the 12-month contract term.
Mark Norwell, Managing Director and CEO of Perenti, said, “Our strategy in North America is to partner with Tier-One operators and long-life assets, where we can add value over the long term. We continue to diligently progress our North American growth strategy and have key executive management personnel based in the region to ensure we develop the right relationships and become engrained within the sector while remaining disciplined in the execution of our strategy.”
Paul Muller, President of Contract Mining, said: “Since mid-2021 our team in North America has worked closely with the Red Chris JV as it transforms the mine into a long life, tier-one underground operation. We have developed very strong relationships with the local communities including a partnership with the Tahltan Nation Development Corporation and are very pleased to be on site at Red Chris for at least the next 12 months.”
An October 2021 prefeasibility study on the Red Chris block cave outlined an initial reserve estimate of 8.1 Moz of gold and 2.2 Mt of copper, with average annual gold production of 158,000 oz and copper production of 48,500 t over the 31-year life of mine.