Tag Archives: Regis Resources

Macmahon books A$600m of work with Newcrest, AngloGold and Vale

Macmahon Holdings has bolstered its order book with a number of contract extensions involving the Tropicana and Telfer gold operations, in Western Australia, and the Hu’u copper-gold project, in Indonesia.

At the Tropicana mine, a joint venture between AngloGold Ashanti Australia Ltd (70% and operator) and Regis Resources Ltd (30%), Macmahon has been providing mining services since open-pit mining started in July 2012 under a life of mine alliance contract.

The additional work for Macmahon follows the completion of a detailed final cutback study of the Havana pit and subsequent confirmation of the optimal method to mine the deeper ore in the Havana ore body. Macmahon has now been provided with the scheduling detail for the cutback, which will add 155 Mt to the material to be mined from 2024.

The final cutback of Havana will extend the open-pit mine life by four years, from 2023 to 2027, and is expected to generate additional revenue of approximately A$470 million ($340 million), it said.

Macmahon has also extended its life of mine contract with Newcrest for the Telfer mine.

On August 12, Newcrest announced it will proceed with the West Dome Stage 5 cutback at Telfer. This new scope of work is expected to generate revenue of circa A$138 million and will extend Macmahon’s work on site to September 2024. This new work has been negotiated on updated rates, which are forecast to achieve the company’s internal financial hurdles, Macmahon explained.

In Indonesia, Macmahon has received a letter of award to construct an 11 km access road at the Hu’u copper gold exploration project on Sumbawa island. This work is valued at approximately A$18 million and is a further step in the company’s strategy to increase its revenue from mining support services.

Subject to finalisation of contract documentation, the project is forecast to commence in September 2021 and employ approximately 150 people. The Hu’u project is 80% controlled by Vale SA. Vale has previously said the project could produce more than 250,000 t of copper and more than 200,000 oz of gold.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are pleased to have secured this additional work which adds approximately A$600 million to our order book. A key highlight is the extension of our long-term alliance contract at Tropicana, which has been a cornerstone of our surface mining business in Western Australia for many years and has recently expanded into underground mining.”

Barminco, Ausdrill transport Rhino 100 raise borer to Regis’ Rosemont gold mine

Having become the first company globally to have taken delivery of a mobile raiseboring machine with uphole, downhole, and back reaming capability, Barminco is transporting a Rhino 100 Raise Borer to another client site in Australia.

With the help of its Perenti surface mining partner, Ausdrill, the newest addition was recently transported to Regis Resources’ Rosemont gold mine in Western Australia.

Just last year, Barminco sealed a three-year underground mining services contract with Regis at Rosemont, which has been transitioning from open-pit to underground mining at the operation.

Barminco said: “Through safe and rapid mobilisation, we are able to meet our clients’ needs and transport our equipment across multiple sites to complete a range of drilling campaigns.”

Since April 2019, Barminco’s first Rhino has travelled a combined 15,000 km between four client sites in the Goldfields of Western Australia, drilling a total of 3,843 m.

The Rhino is manufactured by TRB-Raise Borers in Finland but is equipped with Sandvik tools and is distributed by Sandvik. It is a fully mechanised and self-contained electro-hydraulic mobile raiseborer designed for slot raising in underground mining. The latest models also have an optional back reaming module.

In addition to helping transport Barminco’s latest Rhino to Regis’ site, Ausdrill has recently added a new Boart Longyear LF™160 drill rig and FREEDOM™ Loader combination to its diamond drilling fleet.

This rig reduces the crew’s “Hands On Steel” interaction, while improving overall safety standards, Ausdrill said.

When paired with the FL262 FREEDOM Loader, the LF160 combination is ideal for contractors who want to target sophisticated surface drilling exploration contracts that stipulate some of the highest safety standards, without compromising on productivity, Boart Longyear says.

Ausdrill’s Barminco to go underground at Regis Resources’ Rosemont gold project

Having recently closed a deal to acquire fellow contractor Barminco, Ausdrill has announced A$171 million ($123 million) in new work across the mining space.

Its Barminco business has sealed a three-year underground mining services contract with Regis Resources at the Rosemont project (worth A$113 million), in addition to receiving the nod to perform decline rehabilitation and development works at Western Areas’ new Odysseus mine. Meanwhile, Ausdrill has booked a 12-month contract from Consolidated Minerals for the provision of exploration drilling services at the Woodie Woodie manganese mine. This comes on top of a similar contract with Bellevue Gold at its namesake project in the Eastern Goldfields of Western Australia.

Ausdrill Managing Director, Mark Norwell, said: “These new projects demonstrate the diversity of the expanded Ausdrill group across different projects and resources, solid progress of Barminco, and the professional service our businesses have been providing to our customers.”

Rosemont has been a fully operational open-pit gold mine since March 2013 and is one of three Regis projects in the Duketon deposit area, 130 km north of Laverton in the Goldfields region of Western Australia.

Regis recently approved expansion of the mine to an underground operation located directly below the current Rosemont open pit, with Barminco to perform development and production work at the underground deposit. In August, the Regis board announced it had approved the development of an underground mining operation directly below the current Rosemont open pit exploiting the maiden underground mineral resource estimate of 1.4 Mt at 5.1 g/t for 230,000 oz of gold.

Barminco will commence mobilisation immediately and expects to employ around 100 staff at the project. Onsite works will commence in the March quarter, including commencing portal development at the southern end of the Rosemont Main open pit.

Barminco CEO, Paul Muller, said: “This project adds to Barminco’s extensive experience in the Western Australia Goldfields, with current mining projects at Sunrise Dam and Agnew. We will draw on our deep capability across Barminco’s people, equipment, systems, processes, and expertise in underground mining to ensure we provide a safe and reliable service at Rosemont and look to build a strong, long-term relationship with Regis.”

Meanwhile, the company has already mobilised on the 14-month contract to carry out decline rehabilitation and development works at Western Areas’ Odysseus mine. The contract builds on Barminco’s 14-years of continuous service for Western Areas at Forrestania, which includes the Spotted Quoll and Flying Fox mines where Barminco is the mining services provider.

Ausdrill’s work at the Woodie Woodie manganese mine, in the Pilbara of Western Australia, will commence next month, will run for 12 months and will require five RC drill rigs and one diamond drill rig to be drawn from the company’s existing fleet.

The company has already kicked off work at the Bellevue gold project, which will require around four diamond rigs to be drawn from the existing fleet.