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Macmahon Holdings wins $220m mining contract for Deflector mine WA

Written by Monica Gameng | Feb 16, 2021 1:28:45 AM

Silver Lake Resources has awarded Macmahon Holdings Limited a new $220 million four-year contract for mining services at the Deflector gold and copper operations in Western Australia. 

The contract award will cover full mining services, including all underground development, ground support and production activities such as provision of labour and mobile mining equipment. 

We are very pleased to have won this tender and to be working with Silver Lake Resources at Deflector. This new contract is an important milestone in our strategy to expand our underground business, and is a clear demonstration of the benefits we are now realising from the GBF acquisition. 

Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macro environment. We look forward to continuing to support the development of Deflector, and to achieving further scale in the underground market, Macmahon Holdings CEO and Managing Director Micahel Finnegan said. 

GBF, which was acquired by Macmahon Holdings in 2019, has been in operating and providing mining services at the Deflector mine since 2016. 

The Deflector gold and copper mine is located in the southern Murchison region, approximately 450 kilometres north of Perth and 160 kilometres east of the city of Geraldton. 

Deflector is comprised of a shallow narrow vein, high-grade gold and copper underground mine and a fit-for-purpose processing facility that enables the recovery of gold from a gravity circuit before the production of copper gold concentrate via flotation methods. 

The Deflector mine achieved first gold production in May 2016. 

Source: Macmahon Holdings LimitedSilver Lake Resources; Australian MiningMining TechnologyInternational Mining