Okvau Gold Mining Operation Moving Ahead
ASX-listed MACA has entered into a memorandum of understanding (MoU) with a subsidiary of Emerald Resources to supply equipment and contract mining services at the Okvau gold project in Cambodia.
The MoU with Renaissance Minerals is subject to a final investment decision to develop the project by the Emerald Resources Board of Directors, MACA noted. A draft mining contract between MACA and Emerald, agreeing on all material terms, conditions, schedules and rates, will be executed upon this decision.
MACA’s proposed scope of work under the mining contract includes load, haul, drill and blast utilising 100-t class dump trucks, with the initial term of the contract aligned to the current schedule of seven years with an option to extend. This equates to around $220 million in revenue, MACA said.
MACA Managing Director, Chris Tuckwell, said MACA will use the experience it gained in establishing both a foreign subsidiary and starting a new mine whilst working in Brazil over the last four years to Renaissance’s Cambodia project.
Emerald Resources’ Managing Director, Morgan Hart, said: “The board and management of Emerald have worked closely with the team at MACA over the past 20 years in a multitude of successful operations and are very pleased to continue the relationship on the Okvau gold mine development.”
On 1 May 2017, Renaissance announced the completion of the definitive feasibility study (DFS) on the development of a 2 Mt/y operation at Okvau. The DFS delivered an initial ore reserve of 14.3 Mt at 2 g/t Au for 907,000 oz of gold at an average all-in sustaining cost of $731/oz over an initial seven year life of mine.