Rex will now work with Thiess to develop and agree pricing and contract terms before entering into a Mining Services Contract for the Project


Thiess has been selected as the preferred tenderer for Hillside Copper-Gold Project. (Credit: Khusen Rustamov from Pixabay)

Rex Minerals Ltd (Rex or the Company) is pleased to announce that Thiess Pty Ltd (Thiess) has been selected as the preferred tenderer for the provision
of mining services for the 100% owned Hillside Copper-Gold Project located in South Australia.

The Company has secured a strategic alliance with Thiess by entering into a non-binding Letter of Intent (LOI) which will see the companies work together to deliver an optimal mining solution for the Hillside Project

Once this solution is completed the plan is to enter into a Mining Services Contract, targeted for late CY2022 The benefits to this type of approach are to mitigate critical risks for a growing mining company with a large-scale greenfield

Thiess has shown genuine willingness to join the Company and drive down Project costs, including:

Developing appropriate and flexible mining equipment options

The early integration of personnel to assist with the Project planning including optimal Mine Infrastructure Area (MIA) layouts, and

Utilisation of Thiess’ proven HSE systems to further de-risk the Project with a planned commencement in early 2023.

Commenting on the non-binding Letter of Intent, CEO Richard Laufmann said: “We are very excited about this partnering opportunity with Thiess. Thiess is an exceptional Tier 1 mining services provider with well documented experience with projects at large scale in this region. Working together we are well placed to drive a sustainable mining
approach and contribute to a lower carbon future for the Hillside mine.

“Rex remains focused on bringing Hillside into production. The depth and experience that Thiess can bring in delivering this objective is a massive de-risking step for the Company.”

Since December 2021, Rex has explored the use of Tier 1 mining contractors for operational and mining start-up for the current Stage 1 mine plan in parallel with an owner/operator mining model. It has become evident that the mining contractor model presents many benefits, including opportunities to alleviate the tight schedule of long lead capital items such as excavators and haul trucks. It also provides the option to leverage off an experienced workforce with developed operational procedures.

This is particularly important given the tight market for equipment and personnel that has been impacted by the Covid-19 pandemic. A shortlist of contractors was approached to provide costed proposals for an initial five-year mining period and following a rigorous and detailed evaluation, Thiess’ proposal was the preferred.

Rex will now work with Thiess to develop and agree pricing and contract terms before entering into a Mining Services Contract for the Project. The anticipated timing for finalising the Contract is the end of the fourth quarter CY2022. Target timeframes are indicative and not binding, and may be subject to adjustment as the parties progress the discussions.

Source: Company Press Release