Gold Road Resources (ASX:GOR) has released its quarterly report for three months to September 30, detailing work on the Gruyere Gold Project Feasibility Study, deep drilling at Gruyere and regional exploration success. Gold Road finished the quarter with $79 million cash on hand, having raised $74 million earlier in the year to fund early works on Gruyere. The Company is due to make a decision on the composition of a comprehensive funding package for Gruyere in the December 2016 quarter.
Highlights
Gruyere Feasibility Study completed and early works underway
- Feasibility Study concludes that the Gruyere deposit can support a highly profitable, long life mining operation
- Updated Ore Reserve of 3.5 million ounces (Moz) to support average annualised production of 270,000 ounces for 13 years
- Limited early works commenced following receipt of several Miscellaneous Licences
- Approval from the Environmental Protection Authority (EPA) of Western Australia anticipated in December 2016 quarter
- Funding options well advanced.
- Gold forward sales facility entered into for up to 150,000 ounces, with 50,000 ounces hedged at A$1,792 per ounce
Gruyere high‐grade zone confirmed at depth
- Deep diamond drilling confirms internal high‐grade gold mineralisation beneath final Feasibility Study open pit
- Review of geology and underground economics to commence in the December 2016 quarter to determine if further drilling is required
- Bulk underground mine could add to Gruyere life, economics and valuation
Further progress with regional exploration program
Exploration results released for:
- Gruyere‐style mineralisation discovery at YAM10 prospect, in addition to identification of aircore anomalies at Kingston North, Yaffler South and Riviera (South Yamarna Joint Venture (SYJV))
- YAM14 prospect, eight kilometres south of the planned Gruyere Mill site, progressing to Maiden Resource
- Alaric open pit resource, 24 kilometres west of the planned Gruyere Mill site, reported high‐grade intersections highlighting further open pit and/or underground potential
Reverse Circulation (RC) and/or diamond drilling programmes completed at:
- Attila open pit resource – infill and extensional
- Smokebush – testing continuity of mineralisation
- Ibanez Prospect (Pacific Dunes – Corkwood camp) – testing aircore anomalism
- Santana and Satriani Prospects (Sun River – Wanderrie camp) – following up existing bedrock intersections
