ASX-listed GR Engineering Services (GNG) has landed a A$87.8 million (US$60m) contract to build the one million tonnes per annum processing plant for the A$250m Bellevue gold project in Western Australia.
GR’s confirmation as engineering, procurement and construction (EPC) contractor meant 90% of pre-production expenditure on the project was “locked-in via contracts or tenders”, owner Bellevue Gold said.
“The award of the contract is particularly important because it further insulates Bellevue against rising costs,” it said in a statement.
“The EPC contract is the last of the large capital expenditure items on the pathway to production.”
Bellevue Gold is looking to join Australia’s gold production ranks in mid-2023. It says Bellevue, previously mined for a decade from 1987, is set to become a top-20 Australian gold mine with average production of 200,000oz per annum for the first five years and 183,000ozpa at AISC of A$1014oz over its current life-of-mine plan.
GR shares are up about 18% in the past month, capitalising the company at A$341m.