- Forrestania Resources Limited (ASX: FRS) has awarded the open pit mining contract for the Tycho Gold Project to MEGA Resources Pty Ltd (MEGA)
- The contract covers the Stage 1 open pit mining campaign at Tycho, including drill and blast, mining, haulage, ore delivery and associated mining services for an approximate 7-month duration.
- MEGA's appointment secures a mining partner with relevant open pit mining expertise and the operational capability required to execute the planned development schedule.
Forrestania Resources Limited (ASX: FRS) ("FRS" or "the Company") is pleased to announce that it has awarded the mining services contract for the development of the Tycho Open Pit to MEGA Resources Pty Ltd.
The contract encompasses drill and blast operations, excavation, loading and haulage of ore and waste, ore delivery to the run-of-mine stockpile, haul road construction and maintenance, pit services and associated mining support activities required for execution of the initial Tycho mining campaign.
MEGA was selected following a competitive tender process and demonstrated a strong technical and operational capability aligned with Forrestania's development objectives for Tycho.
“Following a competitive tender process, MEGA demonstrated the experience, capability and operational approach required to successfully execute the Tycho mining campaign.”
David Geraghty, Executive Chairman
The award of the mining contract is a key step in Forrestania's transition from project development into mining operations and further supports the Company's strategy as it advances toward first gold production.
The Tycho contract has an estimated value of approximately A$27 million and incorporates a staged payment profile, including deferred payment arrangements during the early months of the mining campaign and standard industry payment terms thereafter.