Mid-tier gold production and exploration company, Gold Road Resources Limited today presented its activity report for the quarter ending 31 March 2021. Production is from the Gruyere Gold Mine (Gruyere) which is a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group (Gold Fields), which manages Gruyere.
Production and Guidance
- Gruyere produced 66,213 ounces of gold (100% basis) during the quarter (December quarter: 70,794 ounces).
- Gold Road delivered its March 2021 quarter production at an AISC of A$1,386 per attributable ounce (December quarter: A$1,265 per ounce).
- Gruyere ore tonnes processed totalled 2.1 Mt at a head grade of 1.12 g/t Au and a gold recovery of 91.2%. Gold in circuit increased by 3,127 ounces during the quarter.
- During the quarter, scheduled plant shutdowns for relines of the SAG mill and the Ball mill, and the upgrade to the Pebble Crushing Circuit, were successfully completed.
- Gruyere is well positioned to improve on plant utilisation and throughput in line with 2021 guidance (130,000-150,000 ounces attributable) and the 3-year outlook that sees production lifting to a sustainable ~350,000 ounces per annum by 2023, as reported during the quarter.
- During the quarter, Gold Road reported a 50% attributable Maiden Underground Inferred Mineral Resource of 18.5 million tonnes at 1.47 g/t Au for a total of 0.87 million ounces of gold from beneath the December 2020 Gruyere Open Pit Resource of 156 million tonnes at 1.34 g/t Au for 6.71 million ounces.
- Progress continues towards an updated Gruyere Ore Reserve, expected in the second half of 2021. Geotechnical studies indicate the potential to steepen fresh rock open pit slopes by up to 4 degrees. The steeper pit slopes are anticipated to support growth of the open pit Ore Reserve.
Financial and Corporate
- Gold Road’s gold sales totalled 32,100 ounces at an average price of A$2,138 per ounce and included delivery of 10,800 ounces at an average price of A$1,810 per ounce into forward sales contracts. Gold doré and bullion on hand at 31 March 2021 increased to 3,660 ounces.
- Free cash flow of $15.1 million was generated for the quarter (December quarter: $28.2 million).
- The Company continued to grow its net cash balance during the quarter, with cash and equivalents increasing to $149.8 million (December quarter: $132.9 million) and no debt drawn.
- Gold Road released its inaugural Sustainability Report during the quarter.
- A maiden fully franked dividend of 1.5c per share for the six months to 31 December 2020 was paid on 14 April 2021.
- Gold Road currently has four drill rigs operating at Yamarna (100%) and one drill rig operating at Yandina (>88%) as the Company continues to actively explore for a meaningful discovery.
- As part of an initial assessment of the longer-term underground potential, the Gruyere JV partners will commence diamond drilling in April to target mineralisation below the reported Mineral Resources at Gruyere.