Capital Drilling Limited (LON:CAPD) said it has been awarded a three year contract with Resolute Mining Limited (ASX:RSG) to provide drilling services in Mali.
The drilling solutions company said it would provide surface drilling for exploration and resource development at Resolute’s projects and joint venture operations in the West African nation.
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The activities will incorporate incumbent surface drilling activity at the Syama Gold Mine, where the group currently operates three surface rigs.
The new contract will commence on 1 July 2018, replacing the existing short-term surface drilling contract.
Capital began drilling operations for Resolute in Mali in 2016, and currently operates five rigs at the Syama mine, with two underground rigs also operating under a three year contract.
Capital Drilling executive chairman, Jamie Boyton, commented: "We are pleased to announce the successful award of this contract and look forward to continuing our strong working relationship with Resolute on its Mali projects.
He added: “This contract continues to build on the Group's portfolio of long-term contracts, growing our platform in key West African markets, a strategic growth focus for the Company. It also reinforces our reputation as a safe and professional service provider in the region".
Capital Drilling shares were up 1% at 37.5p in early morning trading Wednesday.
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