The work, including drill, blast and other conventional mining services, are expected to begin in the coming month at the Cornishman pit.

Watpac said the work would continue over the next 19 months, with about 50 people employed on the project.

“While the outlook for the resources sector has been mixed, Watpac Civil and Mining have continued to perform well over the past 12 months, and the announcement of this contract with Hanking Gold is an example of the team’s efforts to maintain a healthy forward work book,” Watpac chief executive Martin Monro said.

“Watpac has developed extremely strong credentials in the iron ore, gold and mineral sands space in Western Australia in recent years, and it is very pleasing to see our brand is recognised for our knowledge and expertise in this space despite a difficult market.”

Hanking is a diversified international mining company listed in Hong Kong with more than 20 years of experience in China, Indonesia and Australia.

The company bought Southern Cross in April last year for a final consideration of $18 million cash, as well as the assumption by the purchaser of rehabilitation obligations applying to the tenements being sold.

Southern Cross is about 360km east of Perth, and comprises a package of tenements which cover about 120km of strike of the highly prospective Southern Cross greenstone belt.

The Marvel Loch underground mine remains the core asset of the Southern Cross operations.

Shares in Watpac were last trading 2.3% up at 87c.