Gold Road Resources (ASX: GOR) and joint venture partner Gold Fields have signed a five-year, $400 million contract with Downer EDI for mining services at the Gruyere gold project. The Company says it was comfortable tendering for the five-year contract on the back of favourable market conditions and a long-term business partnership. The cost of the contract was in line with the cost estimated in the Gruyere feasibility study. Work will begin in the December 2018 quarter.
· Five‐year mining services contract signed with Downer EDI Limited
· Construction of mining infrastructure to commence March 2018 quarter
· Mining activities to commence December 2018 quarter
· Cost of mining services contract in line with Gruyere Feasibility Study
· Mining services contract on site peak workforce of 170 personnel
Gruyere JV, a 50:50 Joint Venture between Gold Road Resources Limited (Gold Road) and Gold Fields Limited (Gold Fields), confirms the signing of a five‐year $400 million mining services contract with Downer EDI Limited (Downer) to mine the Gruyere Gold Project (the Project). Favourable market conditions and a long‐term business partnership led the Gruyere Joint Venture to tender for the five‐year contract.
Downer was awarded the contract based on its price competitiveness, relevant experience on technically similar projects, and demonstrated leadership in safety, environmental stewardship and community engagement.
The cost of the mining services contract was in line with the cost estimated in the Gruyere Feasibility Study.
Gruyere JV General Manager Operations, Steve Price, said: “The award of the mining contract is the result of six months work that involved numerous capable contract mining companies. Downer was selected as the preferred Business Partner for the Project as they led in all facets of the key criteria set for the award of the mining contract. We are looking forward to Downer joining the Gruyere team as a key Business Partner and contributing to the future success of the Project.“
Downer will have a peak workforce of approximately 170 personnel engaged in the Project and will commence construction of the mining infrastructure (workshops and office buildings) in the March 2018 quarter.
Mining activities are scheduled to commence in the December 2018 quarter utilising a fleet of 225‐tonne payload dump trucks, 400‐tonne excavators, production blasthole drills and support equipment to move around 31 million tonnes of material per year.
Downer has developed a comprehensive community engagement plan which will include local employment and business opportunities, and procurement sourcing from local businesses.
 Refer to Gold Road’s ASX announcement dated 19 October 2016