Western Australia gold producer Regis Resources has extended MACA’s circa-A$50 million-a-year surface mining contract at Moolart Well (Duketon North) in the state’s north Eastern Goldfields.
The 20-year-old MACA has been working at Duketon since 2010. Neither party disclosed the length of the latest extension.
Gold and iron ore each contribute about 40% of MACA’s $1600 million annual revenue.
Regis’ Duketon operations, including the southern Garden Well and Rosemont mines, are projected to account for 300,000-340,000 ounces of its 420,000-475,000oz FY22 gold output, which includes its 30% share of the Tropicana joint venture with AngloGold Ashanti.
Duketon produced nearly 75,000oz at $1,672/oz AISC in the March quarter this year.
MACA said its April 2022 work in hand was more than $2.6 billion.
“This project will be undertaken utilising existing fleet and contributes to MACA’s secured mining work in hand in the Goldfields region, ensuring future work continues to consist of a balanced portfolio of commodities,” MACA CEO Mike Sutton said.
Regis has a current market value around A$1.53 billion.
MACA’s (ASX: MLD) share price is about where it was at the start of 2022, capitalising the company at about $275m.