Capital Drilling Ltd ("Capital Drilling" or "the Group"), the mineral drilling services company with a focus on the emerging and developing markets, is pleased to announce its first contract in the rapidly expanding West African market with the award of a new contract with Red Back Mining in Mauritania.
The initial contract for the Tasiast project, which is a large gold mine producing at an annual rate of 250,000 oz p.a. with a growing reserve base of over 5 million ounces, requires 5 diamond drilling rigs to be deployed for development drilling. Rig orders have been placed and the rigs are expected to start arriving in the country over the coming months with drilling expected to commence in Q4 2010 and continue through 2011.
Commenting on the contract win, Brian Rudd, Chief Executive of Capital Drilling, said:
"We are delighted to be involved with Red Back and its Tasiast project, which is in the ramp up phase of its gold production. Our expertise in development drilling will greatly assist with the growth of this exciting project. Significantly for Capital Drilling this not only marks our first foray into West Africa but will also see the Group increase its rig fleet to 74 rigs by year end, ahead of market expectations. We look forward to working with Red Back and to further expanding our business in this rapidly developing region".
For further information please access Capital Drilling's website www.capdrill.com or contact:
Jamie Boyton, Executive Chairman
+65 6227 9050
Brian Rudd, CEO
Liberum Capital Limited
+44 (0)20 3100 2000
+44 (0)20 7466 5000
About Capital Drilling
Capital Drilling provides specialised drilling services to mineral exploration and mining companies in emerging and developing markets, for exploration, development and production stage projects. The Company currently owns and operates a fleet of 64 drilling rigs (expanding to 74 by year end) with established operations in Tanzania, Zambia, Egypt, Pakistan, Mozambique, PNG, Eritrea, Hungary and Chile. The Group's corporate headquarters is in Singapore and it has administrative offices in South Africa and Chile.
About Red Back
Red Back Mining is an African focused gold producer (www.redbackmining.com). It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania. Aggressive exploration programs aimed at increasing Red Back's resource and reserve base at both Chirano and Tasiast are ongoing.
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