Pantoro awards key EPC contract to GR Engineering for processing facility at Norseman Gold Project

Pantoro Ltd (ASX:PNR) (FRA:RKN) has issued a Letter of Intent for the award of engineering, procurement and construction (EPC) works for the processing facility at the Norseman Gold Project to GR Engineering Services (ASX:GNG). The contract, worth about $57 million, includes the crushing circuit associated with the plant and will be awarded as a guaranteed maximum price contract.  Detailed engineering works will begin immediately and orders will be placed for long-lead items including the 3.3MW ball mill.  Contract documentation is being finalised and is expected to be executed before the end of February 2021. Quality of the project Pantoro managing director Paul Cmrlec said: “The competitive tender process drew a number of quality submissions reflecting the quality of the project and of the preparatory work completed as part of the DFS. "We are pleased that GR Engineering Services (GRES) will undertake work with their proven track record in new processing plant builds in recent years. "GRES has been the dominant supplier of new processing plant builds in Western Australia in recent times, and we look forward to drawing on their experience in construction of the plant at Norseman.” Demolition works for existing plant The definitive feasibility study (DFS) contemplated a build-own-operate-transfer (BOOT) for the crusher, with the transfer planned in year three. This upfront purchase is superior on an NPV basis relative to the BOOT arrangement. Separately, demolition works for the existing plant on site have been awarded with the commencement of site works planned for mid-February. Norseman Gold Project Pantoro acquired 50% of the Norseman Gold Project in 2019, becoming the manager of the unincorporated joint venture, responsible for defining and implementing the exploration and development work programs, and the day-to-day management. Norseman Project in the Eastern Goldfields of WA, at the southern end of the highly productive Norseman-Wiluna greenstone belt, is about 725 kilometres east of Perth, 200 kilometres south of Kalgoorlie and 200 kilometres north of Esperance. The current mineral resource is 4.2 million ounces of gold with an ore reserve of 602,000 ounces. Historically, the Norseman Gold Project areas have produced over 5.5 million ounces of gold since operations began in 1935, and is one of, if not the highest grade fields within the Yilgarn Craton.