Phoenix Gold awards mining contracts

THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has awarded a number of key mining contracts as part of the staged development plan for the Kintore West open cut, part of the Castle Hill Stage 2 project area near Kalgoorlie in Western Australia.

The company has received all statutory approvals and has commenced mining equipment mobilisation in readiness for mining to begin in the September Quarter.

“Development of Kintore West is a significant milestone for Phoenix and will be the first in a series of mines under the staged development plan,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“We received over 20 proposals for the mining contract and over 10 for the haulage contract demonstrating a very competitive tender process in what is an improving cost environment.

“We look forward to working with our contracting partners who are committed to utilising a local workforce and service providers given we are only 30 minutes’ drive from the City of Kalgoorlie-Boulder.

“We are now focussed on transitioning the business from exploration to producer, continuing to work with Norton Gold Fields on the Castle Hill Stage 1 development and completing the updated heap leaching Feasibility Study for the Castle Hill area.”

 

Castle Hill project area and Kintore West pit location. Source: Company announcement

 

As part of the Castle Hill Stage 2 project area, Kintore West is to be the company’s first mine in an anticipated series of smaller scale mines to be developed under the staged development plan.

The mining contract was awarded to Alliance Contracting, a mining contractor operating locally in the Goldfields region.

Mobilisation of the mining fleet to site has commenced with site establishment expected to be complete in early August.

The haulage contract was awarded to another locally-based business, MLG Oz, which has operated in the region for over 13 years.

Ore will be transported on existing roads to the Greenfields Mill, 27 kilometres to the south using quad road trains with 100 tonne payload.

Phoenix said all Mining Proposals submitted to the Department of Mines and Petroleum WA (DMP) Operations, Environment Division and its Project Management Plan submitted to the DMP Resources Safety Division have been approved for project commencement.

Email: info@phoenixgold.com.au

Website: www.phoenixgold.com.au