ECI process for Nyanzaga Gold Project in Tanzania completed
The Early Contractor Involvement process (ECI) the development of the Nyanzaga Gold Project in Tanzania has been completed.
OreCorp who revealed the report pointed out that Sotta Mining Corporation, had earlier awarded ECI contracts to Ausenco Services and DRA Global in the same year following the completion of the Definitive Feasibility Study (DFS) in August 2022.
The DFS had estimated a pre-production capital cost of $US 474 million for the Nyanzaga Gold Project. This cost estimate covered various aspects such as mine establishment, process infrastructure, non-process infrastructure, accommodation village, resettlement, operational readiness, and included a contingency of $US 36 million. Of this total cost estimate, the ECI scope was $US 215 million.
ECI process
The ECI process involved Ausenco and DRA working independently but in parallel. They focused on early engineering and design activities, including value identification and optimization studies for the process plant and related infrastructure. This also included developing engineering plans, schedules, execution methodology, resource requirements, and cost estimates.
The primary goal of the ECI process was to deliver the EPCM (Engineering, Procurement, Construction Management) package for the Nyanzaga Gold Project. Detailed costings were developed using consultant databases and supply market verification, including tendering for comminution equipment supply.
The revised pre-production capital cost estimates and project schedules submitted by Ausenco and DRA identified significant cost savings of approximately 9% to 13% within the ECI/EPCM scope. This translates to an overall project cost saving of about 4% to 6% when compared to the original DFS estimate. Additionally, optimization efforts reduced the project schedule by approximately 14 weeks.
Both Ausenco and DRA have provided executable EPCM contracts as part of their ECI deliverables. These contracts include incentives for the successful EPCM consultant to achieve cost, schedule, and safety targets as defined in their ECI submissions.
The ECI process was completed within the agreed timeframe and contract sum. OreCorp is pleased with the outcome of the ECI process and will continue to evaluate the ECI submissions while considering a proposed transaction with Silvercorp Metals Inc.
OreCorp CEO & MD Henk Diederichs expressed confidence in the capital cost estimate and project schedule, stating that the ECI process provided valuable data, including current market rates and insights from suppliers and contracting companies in Tanzania. This data will be beneficial for ongoing project optimization and progress.
