AIC Mines Limited (ASX: A1M) ('AIC Mines' or the 'Company') is pleased to announce the award of an engineering, procurement, and construction (EPC) contract for the expansion of the Eloise processing facility to GR Engineering Services Limited (ASX: GNG) ('GR Engineering').
Overview
The EPC contract to expand the Eloise processing facility to 1.1Mtpa throughput capacity1 has been awarded on a fixed cost basis of $77.6 million including provisional sums (excluding contingency). The cost includes approximately $11.4 million of oversized equipment to allow for a straightforward later expansion to 1.5Mtpa throughput capacity2 . Construction is expected to commence in October 2025. This would see the 1.1Mtpa expansion ready for tie-in and commissioning in the December 2026 Quarter. The expansion has been designed to minimise impact on current Eloise operations during construction.
Commenting on the EPC contract award, AIC Mines' Managing Director Aaron Colleran said: 'GR Engineering put forward a competitive tender for the Eloise expansion role and have shown a commitment to working closely with AIC Mines to deliver the expansion safely, efficiently and with minimal disruption to our current operations. I look forward to working with them over the next 18 months as we transform Eloise into a cornerstone asset.'
Eloise Processing Plant Expansion AIC Mines has entered into an EPC contract for the expansion of the Eloise processing plant from its current 725,000tpa throughput capacity to 1.1Mtpa capacity with GR Engineering, subject to the satisfaction of customary conditions precedent. The scope of the expansion comprises the design, procurement, construction, installation and commissioning of the expanded processing plant, including
The EPC contract has been awarded on a fixed cost basis of $77.6 million (including $1.4 million for bulk earthworks on a cost-plus basis and excluding any contingency amount) to minimise cost overrun risk and ensure schedule certainty. The EPC cost includes $11.4 million of additional expenditure for oversized equipment, specifically oversized crushing, grinding and concentrate filtration circuits, to allow for a straightforward second stage expansion to 1.5Mtpa throughput capacity2 . Timing of the second stage expansion is yet to be determined and is dependent on ongoing resource extension drilling success. The decision to oversize key equipment reflects a forward-looking strategy, providing operational flexibility to further expand processing capacity in line with development of the Jericho deposit and potentially other regional deposits, while avoiding higher costs and delays associated with later retrofits.
About GR Engineering
GR Engineering is a leading Australian engineering and contracting company that specialises in providing high quality engineering design and construction services to the mining and mineral processing industries. GR Engineering has extensive experience in construction and expansion of sulphide base metals processing facilities having been the EPC contractor in some of Australia's most successful sulphide base metals projects.
About the Eloise Copper Mine
Eloise is a high-grade operating underground mine located 60 kilometres southeast of Cloncurry in North Queensland. It commenced production in 1996 and has since produced approximately 376,000t of copper and 185,000oz of gold. AIC Mines acquired a 100% interest in the mine in November 2021. Current operations consist of an underground mine accessed via decline. The upper levels of the mine (above 1,190m below surface) are extracted by longhole open stoping and the lower levels are extracted by sublevel caving and longhole open stoping. Eloise is an owner-miner operation with a mining contractor used for underground development and production drilling. Eloise ore is processed through a conventional processing circuit consisting of three stage crushing, grinding, sulphide flotation and concentrate filtration. Metallurgically the ore is very consistent as the ore mineralogy at Eloise is almost exclusively chalcopyrite. Processing achieves high copper recoveries (generally 94% - 95%) and produces a clean concentrate. The concentrate has significant by-product credits from gold and silver. Eloise is currently producing at an annual rate of approximately 12,500t of copper in concentrate. Work is underway to expand production to over 20,000tpa copper in concentrate1 with the development of the nearby Jericho deposit and expansion of the Eloise processing plant. The Jericho copper deposit is located 4 kilometres south of the Eloise copper mine and processing plant. Mineralisation at Jericho is defined over a strike length of 5 kilometres and remains open to the north and south. It commences at approximately 50m below surface and extends to an average vertical depth of 550m and a maximum vertical depth of 700m below surface - the current limit of drilling
Forward Looking Statements
This announcement contains forward looking statements about AIC Mines and Eloise. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'continue', 'target' and 'guidance', or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates, expected costs or production outputs, the outcome and effects of the proposed Transaction and future operation of AIC Mines. To the extent that these materials contain forward looking information, the forward-looking information is subject to a number of risk factors, including those generally associated with the gold industry. Any such forward looking statement also inherently involves known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements to be materially greater or less than estimated. These factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which AIC Mines and Eloise operate or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Any such forward looking statements are also based on current assumptions which may ultimately prove to be materially incorrect. Investors should consider the forward-looking statements contained in this announcement in light of those disclosures. The forward-looking statements are based on information available to AIC Mines as at the date of this announcement. Except as required by law or regulation (including the ASX Listing Rules), AIC Mines undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Indications of, and guidance on, future earnings or financial position or performance are also forward-looking statements
(C) 2025 Electronic News Publishing, source ENP Newswire