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Silver Lake Resources has appointed Macmahon’s newly acquired subsidiary GBF Group to deliver further work at the Mount Monger gold operations near Kalgoorlie, Western Australia.

GBF has been operating at Mount Monger since 2014 and currently provides mining services to the Daisy Complex, Cock-eyed Bob and Maxwells mines, which are part of the operations.

The contractor will provide its services, which are valued around $200 million, for three additional years starting March.

GBF will develop Silver Lake’s new Santa mine, which is also due to commence in March.

Silver Lake and GBF intend to negotiate the formal mining services agreement, with finalisation expected in March.

“We are very pleased to receive this letter of intent from Silver Lake, which will continue and expand on GBF’s successful track record at the Mount Monger projects,” Macmahon chief executive Michael Finnegan said.

“The new work is an important milestone in our strategy to further expand in the underground market, and demonstrates the value in our GBF acquisition.

“We are looking forward to working closely with Silver Lake on this project and building on our relationship with this key client.”