PANORAMIC Resources, WA, has signed a letter of intent with Barminco, awarding it preferred underground contractor status.
Barminco, subsidiary of Perenti Global Ltd, is one of the world’s largest hard rock underground mining service companies.
Confidence in the long -term potential of the project is supported by a 32.7m raising in rights issues mid-January.
Barminco will provide a newer mining fleet and is expected to employ the majority of the existing Panoramic underground mining and maintenance workforce.
Its proven expertise and established operating system is expected to improve operational efficiencies and drive production volumes to reach targeted levels.
Barminco CEO Paul Muller said the miner looked forward to working closely with Panoramic Resources in driving the development of the Savannah North orebody safely and efficiently as it ramped up to full production.
Panoramic has had a full year to date after fighting off a hostile takeover from IGO, hitting the new ore body at Savannah North and employing a new company secretary after the retirement of veteran Trevor Eton.
Savannah shipped its first shipment of concentrate in February 2019 since reopening in September the previous year.
Barminco hope to deliver mobilisation and shift to contract mining at Savannah by the end of the March 2020 quarter.
