Business
New Contracts Updates
New Contracts Updates.
About this update from Capital Limited
[{"type":"text","content":"\n\nFOR IMMEDIATE RELEASE\n20 SEPTEMBER 2023\nCapital Limited\n(\"Capital\", the \"Group\" or the \"Company\")\n \nSignificant Contract Updates\nCapital (LSE: CAPD), a leading mining services company, is pleased to announce the award of a material drilling contract in Nevada and associated rig purchases, together with an update on the ramp up of operations at its Ivindo iron ore contract. \nNew Major Contract\n· A three-year comprehensive drilling services contract with Nevada Gold Mines LLC (\"NGM\") in the United States of America (\"USA\"): The contract spans a wide range of drilling services including diamond, both surface and underground, and underground reverse circulation. Drilling spans a number of operations across NGM including:\no Underground diamond drilling in the Leeville underground mine within the Carlin complex\no Underground reverse circulation drilling in Carlin\no Diamond drilling at the Robertson project within the Cortez complex\nNGM is a joint venture between Barrick (61.5% ownership) and Newmont (38.5% ownership), with Barrick as operator. NGM operates three Tier One gold assets: Carlin, Cortez, and Turquoise Ridge consisting of 10 underground mines, 12 open pit mines and associated facilities.\nThe contract will consist of 9 rigs and will include equipment with advancements in automation for improved safety and efficiency. \nThe contract is expected to generate annualised run rate revenues of ~$35 million once all the rigs are fully operational from 2025, at margins commensurate with the broader group. Capital will purchase new rigs with associated equipment for the contract with capex expected to be ~$20 million, predominantly falling in 2024.\nGabon Drilling & Mining Services Contract Update\n· Ramp up of operations at our load & haul, crushing and drilling contract with Ivindo Iron SA proceeding well: Operations continue to ramp up successfully at the Ivindo project. We have now commenced drilling operations to assist in further defining this world class deposit. The majority of the mining equipment is now in country with operations also already underway, and crushing due to commence later in the year.\nCommenting on the contract wins, Peter Stokes, Chief Executive Officer, said:\n'This ...