Gold Road Resources (ASX:GOR) has released its quarterly activities report for the period ending 31 March 2016, during which the Company delivered a positive Pre-Feasibility Study on its Gruyere Gold Project, 200km east of Laverton in Western Australia and moved to a Feasibility Study. The March quarter also saw the commencement of the 2016 regional exploration program on Gold Road’s 5200km tenement holding in the Yamarna Greenstone Belt, which hosts Gruyere.
Highlights
Gruyere Pre‐Feasibility Study confirms long‐life gold mine (at A$1,500/oz Au)
- Pre‐Feasibility Study findings indicate a technically sound and financially viable Project
- Project generates in excess of A$1 billion in undiscounted free cash flow (pre‐tax) over an initial 12‐year life*
- Maiden Ore Reserve of 3.17 million ounces of gold
- Feasibility Study commenced and on schedule for completion December 2016 quarter
Gruyere Mineral Resource update includes 14 million tonnes Measured category
- Gruyere Mineral Resource increases 10% to 6.2 million ounces of gold
- Measured Resource increases 633% to 0.5 million ounces of gold representing approximately the first two years of production based on PFS projections
- Indicated Resource converted to Measured Resource with minimal variance
- Geological interpretation and mineralisation model confirmed and refined
2016 Regional Exploration Program underway
- Extensional RC drilling at Smokebush Dolerite adds 200 metres strike to mineralisation
- Reverse Circulation drilling completed at Smokebush, Yaffler prospects and in progress at Toppin Hill prospect within South Yamarna Joint Venture (SYJV)
- Reverse Circulation and early diamond drilling completed on multiple Wanderrie Supergroup Anomaly targets (North Yamarna)
- Several small Aircore programmes drilled at MCS prospect and Dorothy Hills Camp Scale Target (North Yamarna)
*See the Company’s ASX announcement entitled ‘Gruyere Pre‐Feasibility Study Confirms Long Life Gold Mine’ dated 8 February 2016 andthe notes regarding production targets on page 8 of this announcement.
