Drilling services provider Ausdrill Ltd
(ASX:ASL) has won a $70 million contract with Navigator Resources Ltd
(ASX:NAV) at its Bronzewing gold mine in Western Australia.
The Africa-focused company says the five-year contract, subject to final agreement on commercial terms and conditions, is for the provision of grade control, drilling and blasting services at the mine.
It is the first contract the company has won since its merger with Brandrill Ltd.
Navigator Resources says it expects to pour its first gold bars from Bronzewing next month and accelerate production to 100,000 ounces a year in the June quarter.
The mine’s former owner, View Resources Ltd, went into administration in February 2008 after disappointing production at Bronzewing and a blowout in costs.
Ausdrill took over Brandrill in December after offering one Ausdrill share for every 14.5 Brandrill shares held, which valued Brandrill at $45.2 million when the bid was launched in August last year.
For the 12 months to June 30, 2009, Ausdrill reported a profit of $40.24 million.
