Swick set to grow order book to $160 million

02-Jul-2018 Intellasia | | 7:28 AM Print This Post

Highlights

* Swick chosen as contractor or preferred contractor across two projects:
Contract renewal at Jundee Gold Mine from Northern Star Resources
Preferred contractor at Renison Tin Mine from Bluestone Mines Tasmania JV
* Total contracts set to grow Swick’s order book by over $80 million to approximately $160 million
* Swick to deploy up to 18 rigs across the two projects
* Contracts in line with Swick’s strategy of targeting high quality and profitable projects as demand for drill rigs increases

Western Australia –Swick Mining Services Limited (‘Swick’, ASX: SWK), a leading provider of high quality underground and surface mineral drilling services, is pleased to announce two contract renewals. Swick Managing Director Kent Swick said the renewals strengthened Swick’s relationship with its key customers across a number of high quality mines.

Performing pre-starts on all equipment including PPE Cleaning and loading the core (iMINCO)

Performing pre-starts on all equipment including PPE Cleaning and loading the core (iMINCO)

“We are very pleased to have been selected as the preferred drilling contractor across two high quality, producing mining projects across Australia,” Mr Swick said. “The largest contract, at Northern Star’s Jundee Gold Mine, allows us to continue our association with a mine where we have proudly been the incumbent contractor since 2007.
“Swick has extensive experience at the Jundee mine and has also successfully drilled some very deep exploration drill holes in recent times that are world class in underground terms. We have been able to maintain high production rates across a wide range of scopes, and many patented Swick drilling systems are in use at this mine.
“Northern Star has proven it invests heavily in its drilling budgets and we are confident that we can offer them both best-in-practice performance and the best value at Jundee. The extended contract reflects Northern Star’s significant exploration success at Jundee, which has seen it greatly extend the projects inventory and mine life.
“We are equally pleased to extend our relationship with our other long-term client Bluestone Mines Tasmania JV and look forward to continue providing world-class drilling services and best value to them.

“Importantly, the renewals reflect a trend towards increasing demand for drill rigs that Swick has been experiencing.”

Jundee Gold Mine
Swick has renewed a significant underground diamond coring contract with Northern Star Resources Ltd (ASX: NST) at its Jundee Gold Mine in Western Australia. Swick currently has ten underground diamond drill rigs employed full time at the Jundee complex. The term of the contract is for an additional two years with a possible two-year extension upon mutual agreement. The initial scope of work is for approximately 712,000 metres of underground core over two years requiring potentially 12 rigs in the first year and increasing to a potential 15 rigs in the second year of the contract.

Since Northern Star purchased the Jundee Gold Mine from Newmont in July 2014, Swick has completed over 800,000 metres of underground core at the operation, including ten exploration holes greater than 1,500 metres in depth. Prior to that, Swick completed over 890,000 metres of underground core for Newmont at the same mine since the award of the original contract in 2007. Swick holds the Australian underground diamond drilling record of 180 metres of NQ2 core in one shift and 104.7 metres of NQ2 core in a single man operational shift all recorded at the Jundee Gold Mine.

Renison Tin Mine
Swick has been chosen as the preferred contractor by Bluestone Mines Tasmania Joint Venture to provide underground diamond drilling services at its Renison Tin Mine in Tasmania, subject to negotiations and execution of a contract. Swick currently has three underground diamond drill rigs employed full time at this mine.
The expected term of the contract is for an additional two years with a possible two-year extension upon mutual agreement. The expected scope of work is for approximately 115,000 metres of underground core over two years requiring 2-3 rigs.
Swick has been providing underground core drilling services at the Renison Tin Mine since 2009 and has drilled in excess of 280,000 metres of underground core at this site.
For more information please contact:

Adrian Watson
FTI Consulting
P: 08 9485 8888
M: 0419 040 807
E: [email protected]

 


Category: FinanceAsia

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