Evolution Mining has awarded an A$155m ($100m) contract to GR Engineering Services for the completion of the plant expansion works at the Mungari operation in Western Australia.
GR Engineering Services is an Australia-based company that provides engineering design, procurement, and construction services to the mining and mineral processing industries.
The contract value is within the project budget and schedule and is part of its commitment to invest $250m to enhance the operation’s processing capacity, said the company.
Evolution aims to increase Mungari’s processing capacity from the current two million tonnes per annum (mtpa) to 4.2mtpa.
The expanded operation would produce 200,000 ounces of gold annually, for the life of the mine, said the Australian gold mining company.
Evolution Mining managing director and CEO Lawrie Conway said: “The award of this contract is a major milestone for the Mungari Future Growth Project.
“It secures the critical processing plant infrastructure within our budgeted costs, locking in over 60% of the project costs, and secures a delivery time within the approved project schedule.
“The Feasibility Study established a sound investment case with an internal rate of return for the project of between 19% and 28%, at a conservative A$2,400 per ounce and spot price of A$2,965 per ounce respectively.”
The Mungari operation is located 600km east of Perth and 20km west of Kalgoorlie in Western Australia, on the lands of the Marlinyu Ghoorlie People and others.
Evolution has progressed the planning works at the project, by starting the initial engineering design and procurement, with plans to begin site works in January 2024.
The expansion project requires an estimated construction period of 30 months, including long-lead items and approvals, with commissioning expected by the first quarter of 2026.
It is expected to reduce Mungari’s all-in-sustaining cost (AISC) by 18% to $1,750 per ounce and extend the mine life to 2038, said Evolution.
