Mid-tier gold development and exploration company Gold Road Resources (ASX: GOR) edged closer towards construction completion at the Gruyere JV project during the December quarter, whilst exploration activities at its standalone gold assets in the Yamarna Greenstone Belt continued to gain pace.
Well‐funded mid‐tier gold development and exploration company, Gold Road Resources Limited (Gold Road or the Company), presents its activity report for the quarter ending 31 December 2018.
HIGHLIGHTS
Gruyere Gold Project
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Projected improvements to the Gruyere life‐of‐mine average annual production to approximately 300,000 ounces per annum (2016 Feasibility Study 270,000 ounces per annum), with average All‐in Sustaining Costs over life‐of‐mine forecast at $1,025 per ounce, places Gruyere in the ranks of a Tier 1 globally significant gold mine.
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First gold production remains on target for June 2019 quarter. As at 18 January 2019, overall Project construction was 91.2% complete.
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Mining commenced and power station commissioned during the quarter. Subsequent to the end of quarter, first ore mining occurred and ore commissioning of the primary crusher commenced.
Exploration
Focussed exploration throughout the Yamarna Greenstone Belt continued, with emphasis on the discovery of stand‐alone economic gold deposits. Promising high‐grade bedrock intersections from the quarter’s drilling programme included:
Southern Project area
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Gilmour: 0.62 metres at 117.78 g/t Au from 340.55 metres (18WDDD0031), 4 metres at 19.61 g/t Au from 111 metres including 1 metre at 74.98 g/t Au from 113 metres (18WDRC0183) and 8.14 metres at 7.11 g/t Au from 261 metres including 1.23 metres at 31.98 g/t Au from 267.91 metres(18WDDD0024)
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Smokebush: 22.24 metres at 1.40 g/t Au from 82.17 metres (18SMDD0013), and 11 metres at 2.27 g/t Au from 47 metres (18SMRC0022)
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Yaffler South: 3.6 metres at 3.68 g/t Au from 281 metres (17SYRC0107)
Gruyere JV – Golden Highway (50%)
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Montagne: 3 metres at 32.06 g/t Au from 84 metres (18ALRC0325)
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Argos: 12 metres at 3.54 g/t Au from 15 metres (18ALRC0376).
Subsequent to the end of quarter, further results from infill and extensional drilling at Gilmour demonstrate remarkable internal consistency and extension of the mineralisation[1].
Corporate
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Cash and term deposits of $44 million at 31 December 2018, and $147 million of undrawn debt facilities.
[1] Refer ASX announcement dated 30 January 2019
