Aspiring producers Bardoc Gold and TNG have selected Perth-based companies GR Engineering and METS Engineering for work on projects in WA and the Northern Territory.
Aspiring producers Bardoc Gold and TNG have selected Perth-based companies GR Engineering Services and METS Engineering Group for work on projects in Western Australia and the Northern Territory.
Bardoc has issued a letter of intent to GR Engineering to build the processing plant and associated infrastructure at its namesake project near Kalgoorlie.
The Bardoc project will cost $177 million to develop, with first production expected in late 2022.
The engineering, procurement and construction (EPC) contract is subject to board approvals, project financing, and other conditions.
Ascot-based GR Engineering, led by managing director Geoff Jones, has completed work on a number of gold projects in WA.
Most recently, it was awarded with a $101 million EPC contract from Northern Star Resources to expand the processing capacity of the Thunderbox operation near Leinster.
“Our clients are increasingly seeking certainty and a track record of performance and GR Engineering has been able to demonstrate this to Bardoc, including by reference to its successful project outcomes in the Western Australian gold sector,” Mr Jones said.
“We look forward to working with the Bardoc team on this important project.”
Bardoc chief executive Robert Ryan said the company was rapidly moving forward with project development.
The contract to GR Engineering comes about a week after Bardoc started work on a cash-flow optimisation study, aimed at increasing the forecast production rate, margins, and cashflow of its 3-million-ounce project.
It also follows a definitive feasibility study, completed in March.
“The competitive EPC tender process has drawn a number of quality submissions, reflecting the rapid progression of the Bardoc gold project and the high-quality work completed as part of the DFS,” Mr Ryan said.
“The appointment of GR Engineering marks another key step in the development of the project and establishes an important relationship with a leading design and construction group.
“We look forward to working with the GRES team over the coming weeks and months.”
Bardoc Gold was trading 2.9 per cent lower at 12:38pm AEST to 6.7 cents.
Shares in GR Engineering were up 3.1 per cent to trade at $1.50.
Meanwhile, TNG has appointed METS Engineering to undertake a technology and process design study associated with the Mount Peake vanadium-titanium-iron project, north of Alice Springs.
The study will assess the potential development of a vanadium electrolyte production facility and is expected to take up to three months to be completed.
TNG says it is also developing a financing strategy for the facility, which includes potential government funding and grant opportunities.
Its share price remains unchanged at 11:38am AEST, trading at 7 cents.
