Spartan Resources (ASX:SPR) has awarded a development contract for the underground exploration drill drive at the Dalgaranga Gold Project to mining services contractor Barminco.
The contract, valued at $18.3 million, provides for 2,350m of development to deliver twin decline access for the establishment of underground drilling platforms to infill and extend mineralisation across the Never Never, Pepper, Four Pillars, and West Winds deposits.
Spartan Resources, which has a market capitalisation of $1.15 billion, says construction of the drill drive will begin in the September quarter of this year, with all regulatory mining approvals and support services in place.
An experienced on-site project team manager to manage and oversee the development and construction process.
The company adds establishing the drill drive and an initial underground drilling program is fully funded from its existing cash reserves.
The exploration drill drive is designed to run parallel and adjacent to the 800m-long, semi-continuously mineralised north-south stratigraphic horizon to provide underground drill platforms to more effectively define the existing deposits.
It will also explore for “high-grade” shoots and provide critical underground infrastructure as Spartan develops its future mine plan.
CEO Simon Lawson says construction of the drill drive is expected to take 10 months to complete., as part of the awarded development contract for Dalgaranga by Spartan.
“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,” Lawson says.
“This will provide for cheaper, more accurate and quicker drilling to continue to accelerate our resource growth and conversion to ore reserves.
“All of the high-grade deposits and prospects discovered at Dalgaranga over the past two years remain open at depth — with mineralisation at the Never Never deposit now defined to beyond 1km below surface — and we’re excited to get the underground rigs in place to help determine just how deep this high-grade mineralisation extends.”
Barminco is a wholly owned subsidiary of global diversified mining services company Perenti (ASX:PRN).
Spartan Resources is a gold-focused company that wholly owns the Dalgaranga Gold Project in Western Australia’s Murchison region.
Write to Aaliyah Rogan at Mining.com.au
Images: Spartan Resources
