GR Engineering Services has entered into a conditional Letter of Intent (LOI) with Gascoyne Resources Limited for an engineering, procurement and construction (EPC) contract for the Dalgaranga Gold Project mineral processing facilities.
GR Engineering, under the LOI, will immediately commence work on front end engineering design (FEED) as well as early initiation activities relating to the design and construction of a new 2.5 million tonnes per annum mineral processing plant and associated infrastructure for the Dalgaranga project.
The awarding of the EPC contract under the LOI is conditional upon the final Gascoyne Board approval as well as final statutory approvals and financing agreements. The contract is expected to be awarded in the coming weeks.
The Dalgaranga Gold Project is expected to commence the commissioning of ore in the second quarter of 2018.
“The development team at Gascoyne are looking forward to working together with GR Engineering to deliver the project as quickly, safely and cost effectively as possible ensuring that Gascoyne can emerge early next year as a low cost, high margin gold producer,” said Gascoyne Managing Director Mike Dunbar.
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