New Contract Wins

RNS Number : 6537F

Capital Drilling Limited

19 June 2012

 



Capital Drilling Limited

("Capital Drilling" or "the Group")

New Contract Wins

19 June 2012

Capital Drilling (CAPD: LN), the emerging and developing markets drilling company, is pleased to today announce new contract wins and expansions.

The new contracts are as follows:

Contract 1 - Kinross Gold Corporation ("Kinross"), Ghana

Capital Drilling Ghana has recently been awarded a new underground drilling contract with Kinross in Ghana, which represents a further expansion of activity at the Chirano Gold Mine, where Capital Drilling has been operating since June 2011. The new contract is for one underground diamond rig which is scheduled to arrive on site in Q3 2012.

Contract 2 - Barrick Gold Corporation ("Barrick"), Zambia

Capital Drilling Zambia has been awarded a contract expansion by Barrick, the world's largest gold company, in the form of additional rigs for development drilling at the Lumwana Mine in Zambia, where the Group has been drilling since 2006.  Capital Drilling has purchased a further two deep hole diamond rigs and one reverse circulation rig, one of which has arrived at site with the other two currently mobilising to site. All rigs are expected to commence drilling in Q3 2012. 

These new rig additions will increase the Company's fleet to 90 rigs, a net addition of five rigs so far in 2012, noting the Group has recently sold one rig as part of the ongoing program of fleet management.

Capital Drilling will provide a further update on its performance and prospects with its pre-close statement scheduled for Friday 29 June 2012.

Commenting on the new contracts, Geoff Fardell, Chief Executive Officer, said:

"We are pleased to announce these new contracts today which demonstrate the continuing development of relationships with our existing customers. The current expansion of the fleet underpins our strategy of focusing on organic growth with blue chip and major mining companies, and operating on long life and robust mining projects."

For further information please access Capital Drilling's website www.capdrill.com  or contact:

Capital Drilling                                                           [phone]

Jamie Boyton, Executive Chairman                      

Geoff Fardell, Chief Executive Officer

Liberum Capital Limited                                         [phone]

Clayton Bush

Richard Bootle

Canaccord Genuity                                                   [phone]

Andrew Chubb

Bhavesh Patel

Buchanan                                                                    [phone]

Bobby Morse

Gabriella Clinkard

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 90 drilling rigs with established operations in Chile, Egypt, Ethiopia, Ghana, Mauritania, Mozambique, Tanzania, Solomon Islands and Zambia. The Group's corporate headquarters is in Singapore and it has its administrative offices for South America in Santiago.

 

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