Capital Limited (LSE:CAPD) said its 80% owned joint venture CMS (Tanzania) was awarded a new surface drilling contract at the Geita gold mine by AngloGold Ashanti (ASX:AGG).
The three-year contract will utilise five rigs from the existing fleet, together with the acquisition of one new rig during 2022, to continue blast hole drilling services at the mine.
The new three year contracts are scheduled to commence on April 1 2021 and are anticipated to generate revenues of $65mln over the contract term.
The contact will take the total number of rigs operating on site in Tanzania to 25, said Capital
CMS already has existing contracts at Geita for surface drilling and underground grade control and exploration.
Capital also has a long-term relationship with AngloGold Ashanti (ASX:AGG) at Geita, starting with grade control drilling services in 2006, which will now extend to 2025, and a production drilling contract that started in December 2021 and is anticipated to generate revenues of US$33mln over the contract term.
Jamie Boyton, Capital’s executive chairman, said: “The [new] contract continues Capital’s delivery of production drilling to the site and reflects the team’s excellent operational and safety performance in providing drilling services to the Geita mine for more than 15 years.”
CMS (Tanzania) is an 80:20 joint venture with local company CK Washirika Limited.