Barminco, the underground mining division of Australia’s Perenti Ltd (ASX: PRN) (OTCMKTS: AUSDF) (FRA: FWG), has scooped its first major contract in the United States. It will be assisting Nevada Gold Mines with development of the Goldrush project.
Barminco’s new 3-year deal with the Barrick Gold Corp (TSE: ABX) (NYSE: GOLD) and Newmont Corporation (TSE: NGT) (NYSE: NEM) joint venture is valued at US$73.8 million. Nevada Gold Mines will be capitalizing on the Australian company’s underground infrastructure expertise.
“We are very pleased to be awarded this project and continue our strategic expansion into the North American market,” Perenti chief executive, Mark Norwell, said in a blog post.
Barminco is known for having one of the largest collections of underground mining equipment in the world. The company is actively involved with projects throughout Australia, North America and Africa. It employs over 5,600 people.
“We utilize state-of-the-art electric/hydraulic jumbo drilling machines equipped to the highest standards and the best operators in the industry to fast track decline development,” Barminco has explained. This provides clients with timely access to underground reserves, the dirt-digging specialist says.
The Goldrush Mine produced about 140,000 gold ounces last year. The asset is anticipated to churn out 400,000 per annum by 2028. Furthermore, it is expected to have a 24-year mine life.
Nevada’s Governor Joe Lombardo was present for the operation’s official opening ceremony last spring.
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This isn’t the 1st time these companies have worked together
The Perenti subsidiary has been actively developing the underground sections of Barrick’s Hemlo gold mine near Thunder Bay Ontario since 2019. This long-running project has been in operation since 1989 and has produced over 21 million ounces.
Last summer, Barminco secured a three-year extension to this contract valued at approximately C$180 million. Once that term has concluded, it could potentially be lengthened until 2029.
This was the first significant North American venture for the Australian companies.
Barminco has also been assisting with development of the Red Chris gold-copper operation in British Columbia run by Newmont since 2021.
Now, the Goldrush project has become a key focus in the mining-friendly state of Nevada as well.
rowan@mugglehead.com
