Swick Mining Services Ltd (ASX:SWK) has been chosen as contractor or preferred contractor across two projects, which will double the company’s order book to around $160 million.
The company has renewed a contract with the Jundee Gold Mine of Northern Star Resources Ltd (ASX:NST) and is preferred contractor for the Renison Tin Mine of the Bluestone Mines Tasmania JV.
These contracts are in line with Swick’s strategy of targeting high quality and profitable projects as demand for drill rigs increase.
Increasing demand for drilling
Swick managing director Kent Swick said the company was pleased to have been selected as the preferred drilling contractor across the two projects.
“The largest contract, at Northern Star’s Jundee Gold Mine, allows us to continue our association with a mine where we have proudly been the incumbent contractor since 2007,” he said.
“We are equally pleased to extend our relationship with our other long-term client Bluestone Mines Tasmania JV and look forward to continue providing world-class drilling services and best value to them.
“Importantly, the renewals reflect a trend towards increasing demand for drill rigs that Swick has been experiencing.”
Strong track record
Swick has renewed its existing diamond coring contract with Northern Star for an additional two years, with the possibility of a two-year extension upon agreement.
Swick has completed over 800 kilometres of underground core since 2014 at Jundee, including 10 exploration holes greater than 1,500 metres.
Swick has three underground diamond drills rigs employed full time at the Bluestone Mines Tasmania JV operation, of which Metals X Limited (ASX:MLX) is a partner.
The expected terms are for an additional two years with a possible two-year extension and will cover around 115,000 metres of underground core requiring two or three rigs.
Swick has been providing drilling services at Renison since 2009 and has drilled more than 280,000 metres.