African Underground Mining Services (AUMS) has received a $160m mining contract from Canada-based gold mining company Roxgold to handle rollover and extension services at the Yaramoko operation, as well as to start works for the Bagassi South mining contract in Burkina Faso.

AUMS is a 50:50 joint venture between Ausdrill and Barminco Holdings.

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“We are delighted to have secured this work and look forward to extending our important, highly valued relationship with Roxgold on their flagship project.”

The contract is for 30 months with an option to extend it for 12 more months in the future.

As part of the contract, AUMS will offer underground mining services for Zone 55 in the Yaramoko gold mine and Bagassi South underground mines.

These services include development and production activities, diamond drilling and associated services.

AUMS chief operating officer Blair Sessions said: “We are delighted to have secured this work and look forward to extending our important, highly valued relationship with Roxgold on their flagship project.”

The company will commence the project in the third quarter of this year and will create approximately 300 jobs.

Owned by Roxgold, the Yaramoko gold mine is located 200km south-west of Ouagadougou in Burkina Faso, West Africa.

The company has completed a feasibility study for the gold project in April 2014 and proposed an underground mine at Yaramoko’s Zone 55.

The Zone 55 project is expected to annually produce 99,500oz of gold over an estimated mine life of seven years. The production at Yaramoko gold project began in May 2016.

Established in 1987, Ausdrill is a diversified mining services company with operations across Australia, Africa and the UK.

Barminco offers underground contract mining services such as jumbo development, production mining, diamond drilling and shotcreting.