Spartan Resources has awarded a new development contract worth A$18.3m ($12.2m) for its Dalgaranga gold project in Western Australia to Barminco, a fully owned subsidiary of Perenti.
Under the terms of the contract, Barminco will be engaged in the construction of an underground exploration drill drive at the Western Australian gold project.
The contract will provide for 2,350m of development at the Dalgaranga project. This will deliver twin decline access for setting up underground drilling platforms to in-fill and extend mineralisation across four gold zones.
The four mineralised gold zones, which are located along a single 800m-long, semi-continuously mineralised north-south stratigraphic horizon, are the Never Never, Pepper, Four Pillars, and West Winds deposits.
Spartan Resources managing director and CEO Simon Lawson said: “We are delighted to have Barminco on board to complete the construction of this new drill drive, which represents a very exciting initiative that will enable us to drill from platforms located right alongside our high-grade deposits and targets.
“This will provide for cheaper, more accurate and quicker drilling to continue to accelerate our Resource growth and conversion to Ore Reserves.”
According to Spartan Resources, the exploration drill drive is designed to run parallel and adjacent to the horizon.
This will enable underground drill platforms to more effectively define existing deposits and prospects, as well as explore further high-grade shoots. It will also provide critical underground infrastructure as Spartan Resources develops its future mine plan.
Scheduled to begin in the September quarter, the construction of the drill drive has secured all regulatory mining approvals and support services. It is expected to take 10 months to complete the construction.
Perenti managing director and CEO Mark Norwell said: “The greenfield underground at Dalgaranga project is an exciting opportunity.
“The resource has the potential to grow into a high-grade gold mine and we look forward to supporting Spartan Resources to achieve their targets during the months ahead.”
Spartan Resources has also established an experienced onsite project team to manage and supervise the development and construction process.
Besides, the establishment of the drill drive and an initial underground drilling programme are funded fully from the existing cash reserves of the company.
Located in the Murchison region, the Dalgaranga gold project comprises a fully developed gold mining operation, which is presently on care and maintenance. The project also includes a vast exploration landholding, providing scope for new discoveries.
The Dalgaranga gold mine was commissioned initially in 2018.
