Tag Archives: Red 5

Macmahon Holdings renews ties with Vault Minerals at Daisy Milano gold mine

Macmahon Holdings Limited says it has been awarded a two-year contract extension by Vault Minerals (formerly Red 5) at the Daisy Milano gold mine within its Mount Monger operation in the Kalgoorlie region of Western Australia.

Macmahon has been providing underground mining services at Daisy Milano since acquiring the contract earlier this year as part of the takeover of the Pit n Portal (PnP) underground services business from Emeco Holdings Ltd, including mine development, production charging and load and haul services.

The two-year contract extension to October 2026 is expected to add approximately A$90 million ($58 million) of revenue towards Macmahon’s secured orderbook and will utilise
existing fleet as required for the project.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to continue working with the team at Daisy Milano and building on our valued relationship with Vault Minerals. We are focused on continuing to drive safety and performance outcomes for our client.”

In the 2024 financial year, the Mount Monger operations delivered total gold sales of approximately 97,000 oz at an all-in-sustaining-cost (AISC) of A$2,176/oz. The three mining centres – Daisy, Mount Belches and Aldiss – produced approximately 657,000 t of ore at an average grade of 3.9 g/t Au from underground sources and approximately 67,000 t of ore at an average grade of 0.93 g/t Au from open-pit sources.

Zenith Energy to roll out 5B Maverick solar system across Australian mine sites

Renewable energy penetration is set to increase on major mine sites in the Goldfields and Pilbara regions of Australia, after Zenith Energy and 5B signed a deployment agreement that could see the 5B Maverick™ system rolled out.

Zenith, one of Australia’s leading independent power producers, and 5B, a clean energy technology provider, signed an Ecosystem Framework Agreement-Deployment, permitting Zenith to be a deployment partner of the 5B Maverick system within Australia.

The 5B Maverick system solar array is prefabricated, allowing rapid deployment while increasing the ability of Zenith to expand renewable assets across existing and future sites, Zenith said. Each 5B Maverick array consists of up to 90 solar panels, mounted on specially designed racks, and optimised for the 540-550 W module class of the utility scale solar industry.

Zenith Managing Director, Hamish Moffat, said the partnership represents the next step in reducing emissions across Zenith’s legacy portfolio.

“We’ve been looking to increase renewable assets across multiple sites for some time; the question has always been around how we can achieve that in such a way that is economically viable,” he said. “The 5B Maverick system is re-deployable, meaning it can be integrated on mines with shorter tenure, and moved at the end of operations at those sites.”

He added: “It offers Zenith greater ability to leverage value from our initial capital expenditure, making it more cost effective to offer expanded renewable energy solutions for our clients.”

5B Co-Founder and CEO, Chris McGrath, said the strategic partnership is an important validation of 5B Maverick’s ability to reduce deployment complexity.

“This has been a major barrier for solar installations on mine sites worldwide,” he said. “The agreement also shows that our cost reduction efforts over the past two years have worked – we’ve hit the price point where 5B Mavericks can be viably packed up and redeployed elsewhere, substantially reducing the risk of stranded assets in mining, agricultural and industrial operations.”

Moffat said Zenith is looking to integrate the 5B Maverick system across three sites initially. These include:

  • Nova: The 5B Maverick will play a major role in Zenith’s industry first ‘engine-off’ project at IGO’s Nova nickel mine, allowing the site to operate on up to nine consecutive hours of renewable energy through the installation of an extra 10 MW of solar, and a 10 MW battery energy storage system;
  • Warrawoona: Zenith recently committed to the supply, installation, and commissioning of a 4 MW DC Solar Farm, using the 5B Maverick, as well as a 3 MW/3 MWh AC battery energy storage system at Warrawoona, owned by Calidus Resources. The hybrid power station configuration will reduce gas use, which in turn results in a reduction in emissions; and
  • King of The Hills: Work is currently underway to install 2 MW of 5B Maverick on the Red 5 site, also supported by a battery energy storage system.

Moffat said the 5B agreement is another key milestone on the company’s journey toward ‘net zero’.

“Our 2035 ‘net zero’ target strikes a balance between ambition and ability to achieve, with the 5B partnership a clear demonstration of our progress and commitment to this goal,” he said.

McGrath said 5B was keen to partner with Zenith, given the independent power producer’s strong reputation and credibility in providing renewable energy solutions to the mining and resources industry.

“We’re keen to develop mutually beneficial partnerships with like-minded companies, and Zenith definitely fits the bill,” he said. “It is great to see Zenith leveraging the ability of the 5B Maverick solar arrays to deploy up to 10 times faster, more safely than single axis tracker and fixed tilt solar systems, to deliver a full solution for their customers.”

Moffat said the partnership offers both Zenith and 5B the opportunity to continue to lead the industry, demonstrating the ability and capacity to effectively integrate renewable energy solutions.

“We have continually said we want to be part of the renewable solution, not just by developing the concepts needed, but by also actively deploying and proving the technology,” he said. “The partnership with 5B allows us to do this and continue to bring our clients on the glide path to ‘net zero’.”

Macmahon lines up open-pit/underground work at Red 5’s King of the Hills gold project

Macmahon Holdings Ltd has been awarded its second major contract in as many weeks in the Goldfields region of Western Australia, receiving a letter of intent to carry out contract mining services at Red 5 Ltd’s King of the Hills (KOTH) gold project.

The KOTH project is an open pit and underground gold deposit with a projected mine life of over 16 years. This could see the company produce 176,000 oz/y of gold over the first six years, according to a recent feasibility study.

Red 5 has commenced the construction of the camp and processing facilities on site and is planning for mining to commence in early 2022. First gold production is expected to occur in June 2022.

Just last week, Macmahon was appointed the underground mining contractor at St Barbara’s Gwalia gold mine at Leonora Operations in Western Australia.

Following a detailed tender process for both the surface and underground mining activities, Red 5 has issued a letter of intent to Macmahon for a proposal combining both scopes of work. Under the agreement, the parties are working to finalise the documentation by which Macmahon will provide all surface and underground mining services to the project over a five-year contract term, commencing in the March quarter of 2022.

Macmahon expects this documentation will be completed by June 2021 and that the contract will add over A$650 million ($497 million) to the company’s order book.

Macmahon’s CEO and MD, Michael Finnegan, said: “We are delighted to be in advanced discussions with Red 5 for its King of the Hills gold project in Western Australia. We have a strategy to expand our presence across the mining services value chain, and this project highlights the benefits of being able to offer a combined surface and underground mining solution from the outset. We look forward to continuing our relationship with the Red 5 team and supporting their development of this important project.”

SRG Global to help Red 5 blast off at Great Western gold mine

SRG Global has been awarded a term contract with Pit N Portal Mining Services to provide specialist production drill and blast services and explosives supply at Red 5 Ltd’s Great Western gold mine in Western Australia.

The term contract is expected to start immediately for an initial 12-month term.

Pit N Portal, a division of Emeco, was awarded the contract mining gig at Great Western back in October.

A satellite deposit located around 55 km from Red 5’s Darlot gold mine and processing facility, Great Western comes with a measured, indicated and inferred resource of 870,000 t grading 2.5 g/t Au for 70,300 oz of contained gold. The maiden proven and probable reserve totalled 437,500 t at 2.5g/t Au for 35,424 oz of contained gold.

Based on a proposed mining rate of between 30,000-40,000 t/mth of ore, the open pit is expected to be completed over a period of around 13 months, with plans to then access the underground orebody via a portal at the base of the pit, Red 5 said at the time.

In addition to the work on Great Western, SRG Global was also awarded a new three-year contract (with option for a further two years) with GFG Liberty OneSteel to provide engineered access solutions at the Liberty Steelworks site in Whyalla, South Australia.

David Macgeorge, Managing Director of SRG Global, said: “We are very pleased to have secured these two term contracts, adding to our recurring annuity earnings.

“The Pit N Portal contract was specifically targeted as it builds upon our mining services portfolio of high-quality growth commodities whilst diversifying SRG Global’s customer base.”