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| The Gold Ridge Plant with the Valehaichichi Pit in the background |
Allied picked up the advanced project in its takeover of Australian Solomons Gold late last year.
Perth-based GR is familiar with Gold Ridge, having taken on its initial engineering and construction in 1998. The firm was also carrying out feasibility studies for the redevelopment and expansion for ASG.
The project will focus on the expansion of the plant to 2.5 million tonnes per annum from 2Mtpa, with the initial phase structured on cost-plus reimbursable terms to underpin an accelerated predevelopment work approach.
Once the final review of associated costing is complete, Allied and GR have agreed to convert the contract to fixed-cost delivery with a mechanism for cost overrun and underrun sharing.
The cost of the EPC component of the redevelopment is estimated to be around $A60 million, including a $5 million contingency.
Allied aims to be producing from Gold Ridge by the first quarter of next year, at a rate of 120,000 ounces per annum.
The mine was originally closed in 2000 due to civil unrest, but Allied said today that it had the full support of the government and local landholders.
Shares in Allied closed 5% or 1.5c down to 27.5c.
