Primary names Hampton as Coolgardie preferred contactor

Hampton Mining and Civil has been chosen as the preferred contractor for the development of Primary Gold Limited’s (ASX: PGO) 100% owned Coolgardie Project in Western Australia.

Hampton is the mining division of Hampton Transport Services, and was established in 2003. It provides open pit mining services to a range of clients throughout the Goldfields of Western Australia.

Under the terms of the agreement with Primary, Hampton will undertake all drill and blast and excavation operations of the three open pits – MacPhersons, A-Cap and Tycho – plus establish underground portal positions in each pit design to cater for potential underground entry. In addition, it will also be responsible for establishment of all site setup (including workshop) and haulage of ore to mill for toll treatment.

Primary Managing Director, Garry Mills, said the company also has vast experience in earthmoving and civil services related to mines, including construction of haul roads and mill and crusher feeds.

Primary Gold’s Managing Director Garry Mills gives an update on both the Coolgardie and Mt Bundy gold projects.

We have recently completed a highly encouraging PFS and subject to receipt of necessary approvals look forward to commencing mining at this project in the current quarter.

Primary recently competed a Pre-Feasibility Study (PFS) which contemplates recovered gold of approximately 65,000 ounces over an initial 28-month mine life. The PFS include a low upfront capital outlay of $850,000, of which Hampton has agreed that $750,000 will be deferred by up to 3 months after production commencement.

All site setup, infrastructure, offices, roads and mobilisation will be catered for in the mining services contract tender rates. Offices and ablutions already exist from previous operations.

The proposed agreement with Hampton will be subject to board approval and receipt of key mining approvals.