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Swick Mining awarded first ever Orexplore commercial agreement

Swick’s Mineral Technology Business, Orexplore,
GeoCore X10 — patented X-ray technology that delivers mineral information in just minutes

Western Australia – Swick Mining Services Limited (‘Swick’, ASX: SWK), a leading provider of high-quality underground and surface mineral drilling and mineral analysis services, is pleased to announce it has been awarded additional work across its Drilling Business and Mineral Technology Business.

Drilling Business contract awards

In what will be Swick’s second largest project, the Company has been awarded a five-year contract to provide underground drilling services at BHP’s Olympic Dam mine in South Australia.

Orexplore Insight® visualises the whole core, with detailed elemental concentration and density data.

Swick has been working with up to five rigs at Olympic Dam since 2017 when an initial trial of its underground mobile diamond drills commenced.  The new contract will see Swick increase its rig volume at site, with the first year’s scope requiring an initial eight rigs, with five to be added to the three currently operating at site.  Of the five additional rigs, three are at site already and the remainder will be mobilised from Swick’s existing fleet.

Internationally, the Company has also been awarded a five-year contract from Minas de Aguas Teñidas SAU (MATSA) at its copper operations in Spain, with two rigs currently deployed.

These projects, combined with Swick’s existing work in hand, has expanded Swick’s order book to $363 million.

Mineral Technology commercial agreement

Swick’s Mineral Technology Business, Orexplore, is pleased to announce that it has been awarded its first infield commercial agreement.

Under the agreement with St Barbara Limited, approximately 1,500 metres of core will be scanned per month over a six-month period at the Gwalia Mine in Leonora.  Swick will conduct technical assessment over a number of potential benefits of the detailed core analysis and high volume of quality data generated by the GeoCore X10 instrument. The agreement has a value of approximately $700,000 over the six-month period.

Orexplore will be working with world class subject matter experts to ensure maximum value for the client is derived from the data obtained to develop a compelling justification for ongoing services beyond the initial six-month period.

Swick Mining expects a formal contract to be signed in the coming weeks and mobilisation of GeoCore X10 instruments housed in a custom-built mobile laboratory to site in September 2020.

Swick Managing Director Kent Swick said: “We are delighted to be awarded a long-term contract with BHP at Olympic Dam.  Credit goes to our operational team who have delivered outstanding safety performance, and high quality and productive drilling that enabled Swick to secure this long term, high volume work.

“In addition, securing a five-year agreement with a large copper miner MATSA in Spain adds to our ongoing work with Somincor in Portugal along the historic Iberian Pyrite Belt.  Our local workforce in that region is highly skilled and they are to be commended for converting a trial into a long-term contract in Spain.

“In the Mineral Technology Business, it is very exciting that we have taken a significant step forward with the award of Orexplore’s first infield commercial agreement.  We look forward to ensuring the value is extracted from this rich 3D data set and I am confident we can add significant long-term value to the Gwalia Mine and the wider brownfield market.”

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