Kingsgate Consolidated Limited (ASX:KCN) Construction Contract Finalised With Ausenco (ASX:AAX) For The Chatree North Plant Expansion
Sydney, Aug 16, 2010 AEST (ABN Newswire) - Kingsgate Consolidated Limited (
ASX:KCN) (PINK:KSKGF) has finalised and signed a construction contract for the Chatree North processing plant expansion project with the global diversified engineering services and project management group, Ausenco Limited (ASX:AAX) (PINK:AUEOF). The expansion project involves the construction of a new plant and upgrade of existing infrastructure to more than double the mine's combined ore processing capacity to over 5 million tonnes per annum of mine ore.
The construction contract is an Engineering, Procurement and Construction Management ("EPCM") contract with Ausenco's Minerals & Metals team who will manage the EPCM assignment for the Chatree North expansion project, with specialist procurement expertise being delivered from the company's global procurement hub in Thailand.
The Ausenco EPCM contract has a target price of A$97 million. In addition Kingsgate's Thai operating subsidiary will complete other ancillary works, including an upgraded electrical substation and other major earthworks.
The total capital cost for the expansion project is estimated at US$125 million of which approximately US$25 million has been spent on purchasing long lead items and detailed engineering design. The remaining estimated cost to complete the total expansion project is approximately US$100 million. Investec (Australia) Bank ("Investec") has been mandated as lead arranger to raise US$100 million to fund the remaining cost of the expansion.
Work on the Chatree North Gold Project has commenced and is due for completion during the September quarter of 2011. Initial contracts to commence construction have been awarded and a 40-man team has been mobilised to site and is pouring concrete. The steel plate has been ordered for the 'tankage contract' so as to expedite construction of this critical facility while the SAG and Ball Mills and their ancillary motors and equipment are all on site.
Kingsgate's CEO Gavin Thomas said the contract was a significant milestone in the continued development of Thailand's largest gold operation. "it is pleasing that Kingsgate retains its long association with Ausenco who successfully constructed the initial Chatree plant on time and on budget".
About Kingsgate Consolidated Limited
Kingsgate Consolidated Limited (ASX:KCN) (OTCMKTS:KSKGF) is an experienced pacific rim gold producer and highly successful ASX listed gold company with significant expertise in gold exploration, development and mining.
Kingsgate owns and operates the Chatree Gold Mine in central Thailand and the Nueva Esperanza Development Project, located in the highly endowed Maricunga gold and silver belt of the Atacama Region of northern Chile.
The Chatree Gold Mine is a world class gold producing asset, with a proven operating history, with 1.8 million ounces of gold and 10 million ounces of silver produced between 2001-2016.
Chatree is a large scale, low-cost, open pit operation with a combined +5 Mtpa processing capacity across two plants, with existing Life of Mine supporting a ~9 year mine life based on 1.3m oz gold reserve.
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