Heron awards A$107m Woodlawn contract
PERTH (miningweekly.com) – ASX-listed Heron Resources has awarded a A$107-million engineering, procurement and construction contract to project house CIMIC for the 1.5-million-tonne-a-year mineral processing plant and associated infrastructure at the Woodlawn base metals project, in New South Wales.
“This contract award follows the successful undertaking of a front-end engineering design programme that included a value engineering approach incorporating significant improvements on the earlier feasibility study work,” said Heron MD and CEO Wayne Taylor.
“The nature of this contract, which included guaranteed maximum price and performance incentives, aligning CIMIC and Heron in delivering an under-budget and early result.”
Work on the contract is expected to start in mid-2017.
Heron, meanwhile, said that full project engineering is around 20% complete, and on-site work is scheduled to start immediately following the completion of project financing.
Woodlawn is expected to produce 40 000 t/y of zinc, 10 000 t/y of copper and 12 000 t/y of lead, over an initial mine life of 9.3 years, with potential to extend the mine life to more than 11.5 years.
The project will process one-million tonnes a year from underground mining and up to 1.5-million tonnes a year from reclaiming tailings, with two production sources providing operational flexibility and reducing risk.
Heron is hoping to start production in 2018.
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