Mid-tier gold production and exploration company Gold Road Resources (ASX: GOR) has released the results of a pre-feasibility study into development of the Gilmour gold project, in the Yamarna belt 1000km north-east of Perth, alongside a maiden Ore Reserve for the deposit.
The Gilmour project is 100%-owned by Gold Road and located 60km by road south-west of the Gruyere process plant. The Gruyere process plant is owned by the Gruyere Joint Venture, of which Gold Road is a 50% partner. Gilmour ore is modelled in the PFS as being hauled via existing and new roads and processed at Gruyere.
HIGHLIGHTS
- The Gilmour pre-feasibility study presents an after-tax net present value of A$231 million at a flat gold price of A$3,500/oz and A$354 million at a flat gold price of A$4,300/oz.
- Project pre-tax free cash flow estimated at A$377 million at a flat A$3,500/oz and A$569 million at a flat A$4,300/oz gold price assumption.
- PFS mine life of five years averaging 50,300ozpa at an average AISC of A$2,004/oz, producing a life of mine total production of 0.25 million ounces at 3.9 g/t Au from underground and open pit. Orebody remains open at depth, with drilling planned for 2025.
- High-grade underground mine producing 0.20 million ounces over four-year underground mine life. Comprising a high-grade component of 0.10 million ounces at 9.34 g/t and lower-grade component of 0.10 million ounces at 3.89 g/t.
- Establishment capital is estimated at $36 million, which includes site infrastructure and haul roads. Ore is modelled as being hauled to the Gruyere process plant, 60km by road. No additional growth capital outside of AISC and the initial establishment capital.
- Project remains on schedule to be shovel-ready from late 2026, with the timing of initial production to be optimised in line with the future Gruyere JV ore processing schedule.
As at 31 December 2024, the maiden Gilmour Ore Reserve is 1.5 million tonnes at 4.10 g/t for 0.19 million ounces. The Ore Reserve is derived from open pit and underground designs at a gold price of A$2,250/oz and includes:
- High-grade underground Ore Reserves of 0.6 million tonnes at 6.6 g/t for 0.13 million ounces, and
- Open pit Ore Reserve of 0.8 million tonnes at 2.2 g/t for 0.06 million ounces.
“Gold Road has a history of delivering value to shareholders and we remain focused on making further discoveries across our Australian portfolio.”