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Develop Global wins $46M contract with MinRes at Mt Marion

ASX News, Materials
ASX:DVP      MCAP $525.2M
01 December 2023 12:14 (AEDT)

Source: Develop Global

Develop Global (ASX:DVP) has announced its receipt of a A$46 million contract for the underground development of the Mt Marion lithium mine in Western Australia.

The project, situated 40km south-west of Kalgoorlie, is a JV between Mineral Resources (MIN) and Chinese Ganfeng Lithium Co.

Now Develop Global is in the fold, tasked with underground mine making – and a lithium drill run.

Scheduled to kick off in early 2024, the 18 month contract aligns with Develop’s strategy of securing multiple contracts within its mining services portfolio.

Works schedule

The pivotal works outlined in the contract encompass the establishment of surface facilities to support underground mining activities; portal establishment, and installation of underground mine infrastructure.

But the foremost deliverable for Develop under the contract is to excavate underground tunnels.

But Develop will also be running an exploration drill-run to – ideally – grow the existing JORC model.

Develop has been tasked with overseeing an extensive diamond drilling campaign aimed at expanding the maiden underground resource of 9.5 million tonnes at 1.52 per cent lithium at Mt. Marion.

Management comment

“The Mt Marion contract is consistent with our stated strategy of securing two to three contracts within our mining services division,” Develop Manging Director Bill Beament said.

“Our team is eager to contribute significantly to the Mt Marion project by applying its extensive skills and experience to the underground development.

“This contract win serves as a testament to Develop’s commitment to excellence and further solidifies its position in the mining services sector.”

Develop Global (DVP) shares last traded at $3.00 at 11:00am AEDT.

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