Doray Minerals signs Deflector power generation and concentrate off-take agreements

Doray Minerals has contracted Pacific Energy Limited’s subsidiary Kalgoorlie Power Stations (KPS) to build and operate a 7MW dual fuelled power station at its Deflector Gold Project located in the southern Murchison region of Western Australia.

Image credit: www.dorayminerals.com.au
Image credit: www.dorayminerals.com.au

Pacific Energy’s Managing Director James Cullen said the contract runs for an initial term of 5 years with options to extend.

“This is an important contract for KPS to secure. We have been working with Doray since 2013 at the Andy Well site and are grateful for the confidence they have expressed on KPS by now awarding the Deflector power generation contract to us,” Mr Cullen said.

“We look forward to contributing to the development of the Deflector project and delivering efficient and reliable power to both sites.”

Doray has also announced the signing of an off-take agreement with MRI Trading AG for the commercial supply and sale of gold-copper-silver concentrate from the Deflector Project, due for first production in mid-2016.

The company’s Managing Director Allan Kelly said the agreement is for 100% of the concentrate produced over Deflector’s Initial Life of Mine (6 years).

“We are very pleased to have negotiated this agreement with MRI and to have secured very favourable commercial terms,” Mr Kelly said.

“There was a high level of interest in the Deflector concentrate with the negotiation process providing strong validation of the expected quality of the product.”

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