Maca Limited selected as preferred mining contractor for the Karlwinda gold projectCapricorn Metals announces that it has completed a competitive process for the contract for the first five years of mining of the Karlawinda Gold Project (KGP).
Capricorn has issued a Letter of Intent (LOI) to award the contract to MACA Mining Pty Ltd, a subsidiary of MACA Ltd (MACA). The LOI has been issued to MACA based on its price competitiveness and relevant experience of similar scale gold projects in Western Australia.
MACA is a well-established and reputable contractor with a strong track record of operational, safety and environmental performance. The cost of the mining services contract is in line with Capricorn’s budget for mining costs over the five year contract term. With mining costs accounting for well over half of the project’s total operating cost, this is an excellent outcome for the Company. Mining activities will commence with ancillary works in the December 2020 quarter and open pit mining in the March 2021 quarter.
The mining fleet will be comprised of new 200 tonne excavators, 180 tonne payload dump trucks, production blasthole drills and support equipment to move an average of 11 million bcm of ore and waste per year. The contract includes an option at Capricorn’s election to extend the contract term beyond the initial five year term. Capricorn Executive Chairman Mark Clark commented: “The selection of a preferred mining contractor is the culmination of a competitive process that included a number of very competent Australian mining services providers. MACA was selected as the preferred contractor after submitting a compelling bid both in terms of price and execution. We look forward to partnering with MACA in the successful operation of the Karlawinda Gold Project.”