The Group is an ASX listed diversified global mining services group headquartered in Australia.
From our meagre beginning as a one-drill operation in Kalgoorlie, the Group has become one of the largest diversified global mining services companies.
The Group has built a portfolio of companies designed to provide a complete mining value chain throughout Australia, Africa and around the world.
The Group is pleased to announce that its wholly
owned subsidiary, African Mining Services (AMS), has been selected as the preferred
open-pit mining contractor by West African Resources Limited (ASX: WAF) at the
Sanbrado Gold Project in Burkina Faso.
The Sanbrado Gold Project is a low-cost,
high-grade operation located only 90 kilometres from the country’s capital,
Ouagadougou, and is the 14th commercial gold mine in Burkina Faso in 14 years.
The project economics are robust, with
Sanbrado forecast to have average annual production of 217,000oz gold at All-In
Sustaining Costs of less than US$600/oz in its first five years of mine life.
The AMS scope of work includes a full suite
of open pit mining services – including site preparation, drill and blast, load
and haul, and maintenance works – over a five year term, generating
approximately AUD$235 million in revenue under a schedule of rates contract.
AMS anticipates it will employ
approximately 190 personnel at the project, with the workforce to be predominantly
local. AMS expects to use a mix of new and existing equipment to deliver on the
AMS and West African Resources are in the
process of finalising the contract terms, which will include the provision of
an optional deferred payment arrangement for up to US$10m at a commercial
interest rate, with works expected to commence in early CY2020.
Perenti Managing Director, Mark Norwell, said:“A key focus for the group has been to enhance our surface operations in Africa and target substantial growth opportunities across a range of commodities in select African countries.
“Being selected as preferred contractor at the Sanbrado Gold Project is a significant achievement and represents the excellent progress we are making in building on the suite of quality projects on which AMS operates in the region.”
Ausdrill Surface CEO, Scott Winter, said: “The
Group has been operating in Africa for almost 30 years and we will draw on our
leading expertise in open pit contract mining to deliver on this exciting new
gold project for West African Resources.”
West African Resources Managing Director, Richard Hyde, said: “Sanbrado is the highest margin gold project in construction in West Africa and we are on target for approximately 300,000 ounces of gold in the first 12 months of production. We look forward to partnering with AMS to bring this fully funded project into production in mid-2020.”
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