Gold Road Resources Limited (ASX: GOR) is pleased to announce a material increase to the Gruyere Ore Reserve alongside the Company’s September Quarter activities.
Gold Road will be holding an investor and analyst conference call today to discuss the update to the Gruyere Ore Reserve and the September 2021 quarter results at 11.30am AEDT (8.30am AWST). Participation on the conference call is by personal invitation only. A live webcast of the briefing will be available on the Company’s website. Please register your details at www.goldroad.com.au/webcast or by clicking here. A recording of the webcast briefing will be available on the Company’s website following the conclusion of the webcast at www.goldroad.com.au/webcast.
Highlights – Gruyere Ore Reserve
- Gruyere JV Open Pit Ore Reserve totals 110.4 million tonnes at 1.28 g/t Au for 4.54 million ounces, a substantial 31% increase of 1.07 million ounces after depletion of 0.21 million ounces during 2021.
- The Ore Reserve includes:
- Updated Gruyere Open Pit Ore Reserve of 103.3 million tonnes at 1.28 g/t Au for 4.24 million ounces.
- Golden Highway Ore Reserve 2 remains unchanged from the December 2020 estimate at 7.1 million tonnes at 1.35 g/t Au for 0.31 million ounces.
- Gruyere’s open pit mine life has been extended to take Gruyere production out to 2032 at a scheduled future average annual production rate of approximately 350,000ozpa.
- Gold Road’s attributable Ore Reserve has increased by 31% from 1.74 million ounces to 2.27 million ounces (after mining depletion).
Highlights – Gold Road September Quarter
- Gruyere produced 59,371 ounces of gold (100% basis) at an AISC of A$1,697 per attributable ounce during the September 2021 quarter (June quarter: 53,132oz (100%) at an AISC of A$1,659 per attributable ounce).
- September quarterly production was impacted by low plant utilisation including the unscheduled ball mill maintenance as announced on 29 September 2021.
- As previously announced, normal production resumed on 30 September 2021 with production guidance provided for the December 2021 quarter of between 71,000-81,000oz (100% basis) while CY2021 guidance was revised to 250,000-260,000oz (100% basis) (previously 260,000-300,000oz (100% basis)).
- All-in-Sustaining Cost for CY2021 is now anticipated to be between A$1,450 and A$1,525 per attributable ounce (previously between A$1,325 and A$1,475 per attributable ounce).
- Gold Road’s gold sales totalled 28,350oz at an average price of A$2,231/oz and included delivery of 9,800oz at an average price of A$1,836/oz into forward sales contracts.
- Gold doré and bullion on hand at 30 September 2021 were 3,112oz.
- Free cash flow was negative $8.4 million for the quarter (June quarter: negative $3.9 million).
- Gold Road reports cash and equivalents of $123.5 million (June quarter: $128.6 million) and no debt drawn.
- An interim fully franked dividend of 0.5c per share for the six months to 30 June 2021 was determined and will be paid on 28 October 2021.
- Subsequent to the end of the quarter, Gold Road announced an unconditional all-cash takeover offer for Apollo Consolidated and a 19.9% interest in the company.
- Gold Road reported encouraging progress at Yamarna and an increased exploration budget of $33 million for 2021. Drilling testing continues on robust aircore anomalies generated at Earl, Abydos, Waffler and Kingston.
- Drilling at the Smokebush prospect intersected favourable geology and high-grade mineralisation including 4m at 13.66 g/t Au from 72m and 17m at 5.74 g/t Au from 279.50m.
View the Gruyere Ore Reserve Increase announcement
View the September Quarter Activities report
View the Gruyere Ore Reserve and September Quarter presentation
