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Swick Mining invest $353M for extended 3-year contract with Nevada Gold

Industrial
ASX:SWK
22 July 2019 22:21 (AEST)

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Swick Mining Services has been awarded a three year contract extension for $353 million at the Nevada Gold Mines JV.

The contract includes work for 18 rigs (8 existing and 10 additional rigs) at a fixed pricing for two years, with a rise and fall applicable for the third year.

Swick Managing Director, Kent Swick is pleased with the contract.

“We are delighted to be deepening our relationships with existing clients and, in the case of the new work with Silver Lake, returning to a project where we have extensive experience,” Kent said.

The company was also selected as the preferred tender by Silver Lake Resources and will provide underground core drilling services to at the Mount Monger operation.

The Nevada Gold Mines is jointly owned by Barrick Gold and Newmont Goldcorp and produced in excess 4 million ounces of gold in 2018.

Swick has been servicing Barrick since 2013 and currently operates eight rigs between Turquoise Ridge and Cortez Hill gold mines as well as the Goldrush project.

As part of the contract extension, Swick will be deploying two additional rigs to these operations.

“Our US operations are now locked in for high volume, high value work for the
next three years with 10 rigs at the Nevada Gold Mines JV and another eight recently announced at Northern Star’s Pogo gold mine in Alaska,” Kent said.

Swick is one of Australia’s largest mineral drilling contractors, providing high quality underground and surface drilling services to a diverse group of mining.

“A third of our total deployed underground diamond drilling rigs now operating outside of Australia. By the end of September, we will have at least 22 rigs operating in our international operations including the USA, Portugal and Spain,” Kent added.

The company is looking forward working for Nevada Gold and is currently reviewing new equipment designs to achieve productivity in the challenging drilling environment.

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