African Underground Mining Services (AUMS), a joint-venture established by Kalgoorlie-born mining companies Ausdrill (ASX:ASL) and Barminco, has signed a contract valued at approximately USD$211 million for works at the Siou underground mine in Burkina Faso.
The Siou development is owned by Canadian mining company SEMAFO, with underground mining expected to commence at site in the third quarter this year.
AUMS has committed to provide all services for a period close to six years, with works including development, production activities and associated services.
Siou is a high-grade gold deposit that already hosts an open-pit mining operation which has been active since 2014.
With a mine-life of eight years and a significant minerals reserve of 3 million tonnes of gold, SEMAFO is targeting average production rates of 209,000 ounces per annum between 2019 and 2023.
Commenting on the contract win AUMS chief operating officer, Mr Blair Sessions, said:
We are delighted to have secured this work and look forward to the partnership with SEMAFO, a Canadian based mining company with gold production and exploration activities in West Africa.”
Mining at Siou will involve long-hole stoping with access to the operations through a large portal and ramp.
The location of the portal will permit the open-pit mining operations in the northern part of the mine to continue uninterrupted while underground mining ramps-up.
AUMS is well-suited to the large project size, with the joint venture company operating the world’s largest fleet of company-owned, mechanised underground mining equipment.
Ausdrill is a major provider of mining services in Australia and Africa and Barminco is an international leader in hard rock underground mining.
