Gold Road Resources (ASX: GOR) has recapped on what has been a momentous three months for Australia’s newest gold miner.
HIGHLIGHTS
Gruyere Gold Project
· First gold poured elevating Gold Road to the ranks of ASX-listed gold producers
· Guidance for 2019 gold production revised to 75,000 to 100,000 ounces (100%) for calendar 2019
· Ramp-up to nameplate production anticipated over six to seven months from commissioning of the ball mill early in September 2019 quarter.
· Gruyere Project remains in line with Final Forecast Capital Cost estimate of $621 million
· Mining continues to track ahead of schedule, with more than 2 million tonnes of ore mined and stockpiled
Exploration
· Drilling focussed on the Gilmour deposit and Morello prospect in the 100% owned Southern Project Area
· Results from drilling designed to support an evaluation of a Maiden Mineral Resource at Gilmour included 2.06 metres at 12.40 g/t Au from 357.2 metres (19WDDD0046) and 4 metres at 4.96 g/t Au from 199 metres (19WDRC0239)
· Initial Gilmour metallurgical test-work indicates potential recoveries ranging from 89% to 99%, with 28% to 82% of gold recovered by gravity separation
Corporate
· As at 30 June 2019, cash at bank was $63 million with $65 million of debt drawn down from the $150 million Finance Facilities
The Gruyere Gold Project delivered its first gold pour from the CIL circuit in the June 2019 quarter, containing 1,138 ounces of gold (100% basis).
This significant milestone, achieved safely and in line with the Final Forecast Capital Cost estimate of $621 million, elevates Gold Road to the ranks of ASX-listed gold producers and comes less than six years since Gold Road discovered the world-class Gruyere deposit.
Gruyere is a joint venture with Gold Fields Limited, who are the operators and managers of the Project. With the delivery of gold from the entire CIL processing circuit, the focus now turns to commissioning of the final components of the process plant, in particular the ball mill, which is anticipated to be completed in the first half of the September 2019 quarter.
Once the ball mill is fully functioning, the design throughput of up to 1,000 tonnes per hour will be achievable. Commencement of the operation of the ball mill will mark the start of the anticipated ramp-up period of six to seven months to full production.
During the commissioning and initial stages of ramp-up, lower grade stockpiled ore is planned to be processed to reduce gold losses associated with the lower recoveries anticipated while plant operations are stabilised.
