Australia’s next gold miner, Gold Road Resources (ASX: GOR), says it expects its Gruyere joint venture project will produce 100,000 ounces of gold in 2019 after achieving first gold pour during the second half of the year. Ramp‐up to full nameplate capacity is expected to be completed within six to seven months of first gold.
The Gruyere Joint Venture (Gruyere JV) is a 50:50 joint venture between Gold Road and Gruyere Mining Company Pty Ltd, a member of the Gold Fields Limited group (Gold Fields).
With first gold on target for the June 2019 quarter, the Gruyere Project anticipates achieving commercial production during the second half of calendar year 2019. Ramp‐up to full nameplate capacity is expected to be completed within six to seven months of first gold.
Gold production for calendar year 2019 is estimated between 100,000 and 120,000 ounces (100% basis). Gold Road’s share of guided production is estimated to be 50,000 to 60,000 ounces. Once commercial production is declared, all‐in sustaining costs for the remainder of 2019 are expected to be between A$1,050 and A$1,150, slightly higher than forecast life‐of‐ mine average (A$1,025 per ounce) as production ramps up to full nameplate capacity.
Prior to commercial production being declared, production costs (net of revenue from any gold sold) will be capitalised. The final forecast capital (FFC) cost estimate remains at $621 million (100% basis).
Gold Road anticipates funding a total share of the FFC cost of $284 million . As of 31 December 2018, Gold Road’s remaining share of capital development costs is approximately $40 million. Gold Road’s remaining share of JV management costs is approximately $10 million.
As at 14 February 2019 the Gruyere JV had mined 185,000 tonnes of ore. A substantial stockpile of ore is planned in preparation for initial production to facilitate a smooth ramp up during 2019.