KEY POINTS
- Forrestania awards MEGA Resources a AUD$27m mining contract.
- Tycho’s first mining campaign is expected to last seven months.
- The deal moves Forrestania closer to first gold production.
Forrestania Resources has awarded a mining contract worth about AUD$27 million to MEGA Resources for open-pit mining at its Tycho gold project near Coolgardie in Western Australia.
The deal marks an important step for Forrestania as it moves from gold exploration and project development into actual mining and production.
Under the agreement, MEGA Resources will carry out the main mining activities needed to begin the first stage of operations at the project.
The AUD$27 million contract covers the full Stage 1 open-pit mining campaign at Tycho.
MEGA Resources is expected to begin moving equipment and workers to the site immediately.
Its responsibilities will include drilling and blasting, as well as loading and transporting ore and waste material from the open pit.
These activities are essential for preparing the mine and moving ore towards processing as production begins.
Road construction and site work included
The contract goes beyond drilling and moving material. MEGA Resources will also construct haul roads and improve access infrastructure needed to support mining operations.
The company will provide other pit services and manage water removal, or dewatering, at the mine site.
Civil works and site mobilisation are scheduled to begin immediately, allowing the project to move quickly into the mining phase.
Forrestania expects the initial Stage 1 mining campaign to run for about seven months.
The programme is designed to move the Tycho project towards its first gold pour as quickly as possible.
The start of mining is a major milestone for Forrestania because it changes the company’s position from an explorer and developer to an active gold producer.
The company will now focus on safely developing the open pit, extracting ore and preparing for gold production.
Forrestania and MEGA Resources have also agreed on a payment structure designed to support the project during its early stages.
The contract includes staged payments and allows some payments to be deferred during the first months of mining.
This arrangement is expected to help Forrestania manage its cash flow while the project is being developed and production increases.
The company will therefore have greater financial flexibility during the important period between the start of mining and steady production.
The contract represents a significant step in the development of the Tycho gold project.
With mining services now secured, Forrestania can move ahead with site preparation, open-pit operations and other activities needed to reach first gold production.
The seven-month Stage 1 campaign will be closely watched as the company works to turn the project from a development asset into a producing gold operation.
Forrestania’s agreement with MEGA Resources also provides a clear framework for the early mining work, covering everything from drilling and blasting to haulage, road construction and water management.
