Mid‐tier gold producer and exploration company Gold Road Resources (ASX: GOR) is pleased to report its activities report for the June 2021 Quarter.
Production and Guidance
- Gruyere produced 53,132 ounces of gold (100% basis) during the quarter (March quarter: 66,213 ounces).
- Gold Road delivered its June 2021 quarter production at an AISC of A$1,659 per attributable ounce, slightly better than quarterly guidance provided on 28 June 2021.
- Lower production ounces and higher costs quarter on quarter resulted from a torn conveyor belt and subsequent delays restarting the ball mill as announced on 28 June 2021.
- During the quarter, the Gruyere JV commenced a 12,000 metre deep diamond drilling programme beneath the Gruyere Open Pit. The first two holes have returned encouraging results of 105 metres at 1.12 g/t Au from 1,026 metres and 47 metres at 1.61 g/t Au from 957 metres.
- Gruyere celebrated its first 2 years of gold production on 30 June 2021, having produced 476,648 ounces (100% basis) since first pouring gold in June 2019. This was delivered at an average AISC of A$1,307 per attributable ounce to Gold Road.
Financial and Corporate
- Gold Road’s gold sales totalled 28,425 ounces at an average price of A$2,145 per ounce and included delivery of 10,300 ounces at an average price of A$1,823 per ounce into forward sales contracts.
- Free cash flow was negative $3.9 million for the quarter (March quarter: positive $15.1 million) due to lower production and payments relating to prior period accrued amounts for income tax ($7.4 million) and accrued royalties ($3.5 million).
- The Company reports cash and equivalents4 of $128.6 million (March quarter: $149.8 million) and no debt drawn.
- Gold Road had five drill rigs operating at Yamarna and one drill rig operating at Yandina.
- Drilling to test for extensions of mineralisation at the Smokebush prospect intersected favourable geology with a number of holes intersecting quartz veining and visible gold. Assays are pending.
- A programme of aircore drilling at Gilmour South intersected similar geology to that seen at the Gilmour Deposit.