Australia's MEGA Resources Secures $145 Million Mining Contract
en.Wedoany.com Reported - On August 27, Forrestania Resources awarded MEGA Resources the open-pit mining contract for the Johnson Range Gold Project, with a base contract value of approximately A$145 million and a planned execution period of two years. The contract covers open-pit mining operations over the project's mine life, with the contractor mobilizing personnel and equipment after the completion of pre-project preparatory work.
MEGA Resources' scope of work includes drilling and blasting, loading and haulage of ore and waste rock, mine road construction, mining infrastructure development, and supporting operational services. Forrestania Resources selected the contractor through a competitive tender process, and this award does not yet represent the commencement of mining operations.
The Johnson Range Project is located approximately 170 kilometers north of Southern Cross in Western Australia and about 6 kilometers northwest of the historic Evanston Mine, covering a tenement area of approximately 6 square kilometers, which includes the Gwendolyn deposit that has previously undergone shallow open-pit mining.
Forrestania Resources' mineral resource estimate updated in May this year shows that Johnson Range hosts 2.0412 million tonnes of ore at an average gold grade of 1.99 grams per tonne, containing 130,730 ounces of gold, using a cut-off grade of 0.5 grams per tonne. The resource includes an existing ore stockpile adjacent to the open pit, with a stockpile volume of approximately 67,700 tonnes at an average gold grade of 0.99 grams per tonne, containing approximately 2,150 ounces of gold.
The project's in-situ mineral resource is approximately 1.9735 million tonnes at an average gold grade of 2.03 grams per tonne, containing approximately 128,580 ounces of gold, comprising indicated and inferred resources. This update represents an increase of approximately 26% over the previous estimate, with the data integrating historical drilling information and 48 reverse circulation holes completed in 2026, adding 4,344 meters of new drilling.
MEGA Resources will commence mobilization after the project completes final readiness preparations. Forrestania Resources will subsequently provide updates on contractor mobilization, mine site infrastructure construction, and mining commencement milestones.
