Silver Lake Resources has selected Macmahon Holdings for a four-year mining works contract at the Deflector gold and copper mine in Western Australia.
The deal, worth about A$220 million, will run through April 2025.
Macmahon subsidiary GBF has been providing underground mining services at the project since early 2016. Macmahon acquired GBF in 2019.
The scope of the new contract includes all underground development, ground support and production activities such as the provision of labour and mobile mining equipment.
“This new contract is an important milestone in our strategy to expand our underground business, and is a clear demonstration of the benefits we are now realising from the GBF acquisition,” said Michael Finnegan, Macmahon CEO and managing director.
“Importantly, the Deflector mine is a high-grade gold and copper asset … so [it] is an attractive project in the current macro environment.”
Deflector is located in the Murchison region of WA, about 450 km north of Perth. It recorded first production in May 2016.