Capital Drilling, which has made a strategic investment of US$3 million in Allied, will assume management control of Bonikro's heavy mining equipment fleet and perform drill and blast, grade control, load and haul, and dewatering services.

Bonikro's fleet, including 16 dump trucks, four shovels and associated mining equipment. will be supplemented with an excavator, three bulldozers and auxiliary equipment supplied by Capital Drilling.

"[This provides us] with a unique opportunity to enter into a contract of this nature with modest immediate capital requirements," the company said.

"Together with the three new blasthole rigs to be acquired, near term capital commitments are expected to total approximately US$8 million, apportioned between the drilling fleet (US$4 million) and the ancillary earth moving equipment (US$4 million)."

Capital will be taking full responsibility for the fleet's upkeep and maintenance.

Work has started at the mine site. Senior staff from the contractor arrived on-site in September and they are now working with Allied management to refine the Bonikro mine plan. That was after a small team of personnel first came on-site in July.

"We are excited to embark on this new phase for Capital Drilling and to commence our first comprehensive mining services contract," executive chairman Jamie Boyton said.

"We can now offer clients a completely integrated mining service from initial exploration drilling right through to extraction and delivery of ore to the mill."

Bonikro has historically produced more than one million ounces of gold.

Mauritius-based Capital Drilling currently owns and operates a fleet of 92 drilling rigs with established operations in Botswana, Burkina Faso, Ivory Coast, Egypt, Kenya, Mali, Mauritania, Nigeria and Tanzania.