Lycopodium Lands A$40M EPCM Contract for Namibia’s Twin Hills Gold Project
Lycopodium Limited has secured a significant A$40 million contract to deliver engineering and construction management services for Osino’s Twin Hills Gold Project in Namibia, aiming for first gold production in early 2027.
- A$40 million EPCM contract awarded for Twin Hills Gold Project
- Scope includes engineering, procurement, construction management, and commissioning
- 5 Mtpa Carbon-in-Leach processing plant development
- First gold production expected in Q1 2027
- Lycopodium’s prior feasibility studies underpin project delivery
Lycopodium Secures Major EPCM Contract
Lycopodium Limited (ASX: LYL), a global engineering and construction firm, has been awarded a substantial Engineering, Procurement, and Construction Management (EPCM) contract valued at approximately A$40 million. The contract is for the development of the Twin Hills Gold Project in Namibia, operated by Osino Gold Exploration and Mining. This award marks a significant milestone for Lycopodium, reinforcing its expertise in delivering complex mining infrastructure projects.
Project Location and Scope
The Twin Hills project is strategically located in central Namibia’s prospective Damara Orogenic Belt, about 150 kilometres northwest of Windhoek and near the town of Karibib. Lycopodium’s scope covers the full spectrum of EPCM services, including engineering design, procurement of materials and equipment, construction management, and commissioning of a 5 million tonnes per annum (Mtpa) Carbon-in-Leach (CIL) processing plant. The plant will feature multiple stages of crushing, milling, gravity recovery, and gold extraction circuits, alongside tailings treatment and storage facilities.
Building on Feasibility and Design Work
Lycopodium’s involvement with Twin Hills extends back several years, having delivered the Preliminary Economic Assessment in 2021, followed by the Pre-feasibility and Definitive Feasibility Studies in 2022 and 2023 respectively. Over the past year, the company has advanced the Front End Engineering and Design (FEED) phase, finalising key process and earthworks designs and selecting major long-lead equipment. This continuity provides a strong foundation for efficient project execution.
Strategic Importance and Regional Expertise
Peter De Leo, Lycopodium’s Managing Director and CEO, highlighted the company’s deep experience in the region, noting its involvement in nearby producing gold mines such as Navachab and Otjikoto. This regional expertise is expected to be leveraged to ensure the successful delivery of Twin Hills. The project’s proximity to established operations also suggests potential synergies and operational efficiencies once production begins.
Looking Ahead
With first gold production anticipated in the first quarter of 2027, Lycopodium’s contract award not only secures near-term revenue but also positions the company as a key player in Namibia’s growing gold mining sector. The project’s progress will be closely watched by investors, given its potential to contribute meaningfully to Lycopodium’s future earnings and the broader mining landscape in the region.
Bottom Line?
Lycopodium’s Twin Hills contract cements its foothold in Namibia’s gold sector, setting the stage for growth ahead.
Questions in the middle?
- What are the detailed timelines and milestones for the Twin Hills project execution?
- How will potential delays or cost overruns be managed given the project’s scale?
- What are Osino’s broader development plans beyond Twin Hills and how might Lycopodium be involved?
