Western Australia based OreCorp has announced that the early contractor involvement (ECI) process for the Nyanzaga gold project’s development is now complete.
The Nyanzaga gold project is an advanced development project located in the Archaean Greenstones of the Lake Victoria Goldfields of northwest Tanzania.
Sotta Mining Corporation – a joint venture between Nyanzaga Mining Company, a wholly owned subsidiary of OreCorp (84 per cent) and the Government of Tanzania (16 per cent free carried interest) – awarded ECI contracts earlier this year to engineering companies Ausenco Services and DRA Global following the definitive feasibility study (DFS) completed in August 2022.
OreCorp said the ECI process involved Ausenco and DRA Global, in parallel but independently, completing early engineering and design activities, including value identification and optimisation studies.
This comprised development for the process plant and related infrastructure, engineering plans, schedules, execution methodology, resource requirements and cost estimates. OreCorp said the aim of the ECI process was to deliver the engineering, procurement and construction management (EPCM) package for Nyanzaga.
An executable EPCM contract has been provided by Ausenco and DRA Global. Both contracts include incentivisation for the successful EPCM consultant to achieve costs, schedule and safety targets as defined in its ECI submissions.
The ECI process was completed by Ausenco and DRA Global within the agreed timeframe and contract sum.
“The initial findings of the ECI submissions provide confidence that the capital cost estimate and project schedule, developed during the DFS, are conservative and targets are achievable,” OreCorp managing director and chief executive officer Henk Diederichs said.
“The ECI process has provided OreCorp with valuable data including current market rates from suppliers and contracting companies operating in Tanzania and will be beneficial in the continued optimisation and progress of the project.”
OreCorp will continue to evaluate the ECI submissions, considering the proposed transaction with Silvercorp Metals announced in August, which will involve Silvercorp acquiring all fully paid ordinary shares of OreCorp.
