Midway Gold Corp. selected Ledcor CMI Inc. as the mining contractor for the company’s open-pit Pan project in Nevada. During the early years of operation, Ledcor will provide all mining-related services, including manpower and equipment for the Pan project at a substantial capital savings to Midway.
“We have been working hard to reduce initial capital costs at Pan,” said Ken Brunk, president and CEO of Midway. “Entering into this contract with Ledcor goes a long way toward bringing down our pre-production capital, as we no longer need to purchase a mine fleet and the ancillary facilities associated with an owner-operated mine.”
The 2011 Pan feasibility study included $29.5 million budgeted for mine equipment, predominantly attributable to the mine fleet, as part of the $99 million initial capital estimate. The initial capital required to get Pan into production will now be materially reduced.
The term of the agreement between Midway and Ledcor extends for five years. Ledcor will be directly responsible for drilling, blasting, loading, and hauling ore to the leach pad for processing by Midway. They will mobilize equipment to the site on Midway’s schedule