PERTH (miningweekly.com) – ASX-listed gold miner Beadell Resources has signed a letter of intent (LOI) with fellow listed mining contractor Maca over the management of mining operations at the Tucano gold mine, in Brazil.
Beadell’s existing mobile fleet and equipment would progressively be transferred to Maca under a two-year staged acquisition process valued at A$40-million, with half of the acquisition to occur by November this year.
Under the LOI, Maca would provide all drill and blast, load and haul, as well as crusher feed services at the Tucano project for a period of five years.
The Tucano project was currently producing between 180 000 oz/y and 200 000 oz/y.
Beadell MD Peter Bowler told shareholders on Thursday that the strategic partnership would offer a number of benefits to the company, including strengthening its cash position and balance sheet, providing surety of meeting its production forecast, and returning the company’s all-in sustaining cost to the lowest quartile by sharing in the benefits of a 30% to 40% productivity improvement at Tucano by leveraging of Maca’s expertise and experience.
“The benefits of this partnership should not be underestimated and will ensure that Beadell remains a low cost gold producer for many years to come,” Bowler said.