GR Engineering has notched a $79 million contract variation to significantly bolster its work on a plant upgrade at Vault Mineral's goldmining operations near Leonora.
GR Engineering Services has notched a $79 million contract variation to significantly bolster its work on a plant upgrade at Vault Mineral's goldmining operations near Leonora.
The ASX-listed contractor told the market it had received a $79 million variation to its existing engineering, procurement and construction contract from a subsidiary of Vault Minerals, the business born of the Red 5 and Silver Lake merger.
GR Engineering said the project scope comprised designing, procuring, constructing, installing and commissioning the upgrade of the King of the Hills processing plant.
The contract was previously priced at $75 million, before Vault moved to dovetail stage one and two of the plant expansion at Vault's King of the Hills gold operations north of Leonora.
The wet processing plant – which is being upgraded to a throughout of 7.5 million tonnes per annum - current capacity sits at 4mtpa.
Late last month Vault told the market it was dovetailing phase one and two of the plant expansion after increasing the open pit ore reserve. The miner is targeting 7.5mtpa from the second quarter of the 2027 financial year.
Vault previously costed stage one of the project capex at about $80 million and stage two at $92 million, with an eye to up plant throughput by 50 per cent.
GR Engineering said the variation now brought the value of the project up to $155 million.
“We are pleased to continue working with Vault at their King of the Hills processing facility,” GR Engineering managing director Tony Patrizi said.
“We see the award of this additional stage of works as a strong endorsement of GR Engineering’s performance in the delivery of the work that has been performed to date.
“We look forward to continuing to work with the Vault team on the successful and safe delivery of this project.”
Shares in GR Engineering last changed hands at $2.80 apiece.
