Mid-tier gold production and exploration company Gold Road Resources (ASX: GOR) has reported initial results from the Gruyere underground drilling program designed to confirm that the Gruyere ore body extends at depth.
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 and exploration portfolio that includes a 17.3% strategic shareholding in takeover target De Grey Mining (ASX: DEG).
The Gruyere JV is conducting an underground drill program and other studies to assess the potential underground expansion of the Gruyere gold mine. This includes a scoping study that is being conducted by SRK Consulting into the underground mining potential.
The underground drill program is an 18-month, 60,0000m program beneath the Gruyere open pit to confirm that the ore body extends at depth. The drill program is targeting deeper ore zones of approximately 700m below the final Ore Reserve pit design as well as infill drilling within the upper 400m section of the conceptual underground resource to achieve an Indicated Mineral Resource level of confidence. Previous drill programs have identified mineralisation to a depth of 1,150m below the surface.
Results from 13 infill drill holes (for 9,478m) have been returned from the drilling program and are up to 200m beneath the final Ore Reserve pit design. The initial results confirm the quality, consistency and continuity of the Gruyere ore body at depth.
Highlights from initial returned assays include:
- 119m at 1.10 g/t Au including 33m at 1.57 g/t from 834m;
- 54m at 1.62 g/t including 28m at 1.99 g/t from 480m;
- 87m at 0.86 g/t including 18m at 2.20 g/t from 737m;
- 68m at 1.11 g/t including 21m at 1.37 g/t from 641m;
- 57m at 0.79 g/t including 23m at 1.39 g/t from 618m; and
- 52m at 1.06 g/t including 19m at 1.54 g/t from 613m.
The drill program to confirm the underground mining potential will continue over the next 15 months. Currently, there are four surface diamond drill rigs dedicated to the program, increasing to five drill rigs in the coming months.
“These initial results from the drill program, supported by results from existing drill holes, provide further confidence that the ore body extends as expected and that there is good potential for profitable underground mining at Gruyere,” managing director Duncan Gibbs said.
“The studies and drilling have the potential to prove that gold mining at Gruyere could continue well beyond 2032, adding material value to Gruyere and Gold Road shareholders.”
