Metals X has awarded the underground mining and services contract for its Paddy’s Flat gold mine at Meekatharra to Australian Contract Mining.

The contract term is three years and works are expected to commence on 1 September 2015.

The Paddy’s Flat underground operation is the first of several underground operations planned to start in a sequential manner over the ensuing years at the company’s Central Murchison Gold Project (CMGP). Open pit mining commenced in June 2015 and the process plant is expected to commence in October 2015.

Metals X CEO Peter Cook said: "We are pleased to start Paddy’s Flat underground mine and commence a new chapter in the Meekatharra district that will take its focus back to underground mining and where the historic goldfield started over 100 years ago.

"We are pleased that ACM have won a highly competitive tender for the works. They have been solid and professional performers at our other gold operations and we have a great working relationship with them."