Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has provided a production update following significant rainfall this month.
Gold Road’s principal asset is a half-share in the Gruyere gold mine, in Western Australia’s north-eastern Goldfields. The Gruyere JV is a 50:50 joint venture with Gold Fields (JSE: GFI), which manages and operates the Gruyere gold mine. In addition, Gold Road also has a significant investment portfolio.
Gruyere’s mining contractor MACA has been successful in the recruitment of labour to support the ongoing expansion of mining rates at Gruyere. MACA’s workforce is now at desired levels.
Total material movement rates ramped up to targeted annualised daily rates prior to a significant and protracted regional rain event this month. Bench turnover of the stage three and four pits to improve access to ore remains the priority focus at Gruyere.
So far this month, Gruyere has received circa 140mm of rain, with the town of Laverton reporting circa 110mm.
The substantial rainfall has resulted in the closure of Laverton Shire roads that provide access to Gruyere and the suspension of mining operations over a portion of this period, with the likely resumption of open pit access expected next week.
As a result of the temporary suspension of mining operations and some disruption during the ongoing rain event, the processing plant has been processing stockpiles for much of the month to date.
March quarterly gold production is anticipated to be in the range of 68,000 – 73,000 ounces (100% basis).
Despite the rainfall event, 2024 annual guidance for Gruyere remains unchanged at between 300,000 and 335,000 ounces (150,000 to 167,500 ounces attributable) at an attributable AISC of between A$1,900 and A$2,050 per ounce.
As Gold Road has stated previously, mining and production are guided to continue to ramp up through the first half of the calendar year with stronger production performance expected for the second half of calendar 2024.
