Gold Road Resources has updated the market on the roll‐out of its 2017 Yamarna exploration programme and project development activities at the Gruyere Gold Project (50:50 Joint Venture with Gold Fields Ltd). The Company awarded 280,000 metres of exploration drilling to contractors DDH1 and Ranger as part of 2017 programme. It also commissioned the 288‐room Gruyere Village Stage 1, now under the management of Compass Group. Preferred tenderers have also been confirmed for major Gruyere contracts including Bulk Earthworks, EPC and Power Supply.
- Planned 280,000 metres of exploration drilling awarded to DDH1 and Ranger as part of 2017 exploration programme
- Commissioned 288‐room Gruyere Village Stage 1 with first meal served under Camp Management Services Contract awarded to Compass Group
- Preferred tenderers confirmed for major Gruyere contracts including Bulk Earthworks, EPC and Power Supply
- Construction of the Anne Beadell borefield commenced to support early construction activities and supply of potable water to camp
Gold Road Resources Limited (Gold Road or the Company) is pleased to provide an update on the roll‐out of its 2017 Yamarna exploration programme and project development activities at the Gruyere Gold Project (the Project), a 50:50 Joint Venture with Gold Fields Ltd (Gold Fields), to form the Gruyere Joint Venture (Gruyere JV).
As part of the ramp‐up of its prioritised A$30 million greenfields exploration budget for 2017, Gold Road has completed the tendering process to select drilling companies to conduct this year’s drilling on its 100% owned North Yamarna Project, the Gruyere JV Project and the South Yamarna Joint Venture Project (50% Sumitomo Metal Mining Oceania). Following a competitive process two significant drilling contracts have been awarded to proven Western Australian operators DDH1 Drilling (DDH1) and Ranger Drilling Services (Ranger).
DDH1 has been awarded the contract to supply all diamond drilling services. This includes the regional greenfields exploration diamond drilling across all three projects and deep diamond drilling currently in progress assessing the underground potential of the Gruyere deposit. The 2017 programme, approximately 35,000 metres of diamond drilling in total, includes 14,000 metres of deep diamond drilling at Gruyere. Since starting in 2006 DDH1 has established itself as an innovative and successful drilling company with operations throughout Australia. With an excellent safety record DDH1 is regarded as one of Australia’s premier deep directional drilling specialists.
Ranger has been awarded the percussion drilling contract which includes all Reverse Circulation (RC) and aircore drilling services. This contact will cover aspects of the 2017 programme focussed on regional greenfields drilling (RC and aircore) and resource drilling of existing and identified resources. The 2017 budget includes approximately 77,000 metres of RC drilling and 160,000 metres of aircore drilling. Ranger, established in 2006, has a proven track record in drilling excellence and safety, and is a community engaged company that supports several community focussed initiatives in areas where they are active.
Gold Road, Executive Director – Exploration & Growth, Justin Osborne said: “Gold Road is very pleased to have engaged DDH1 and Ranger to support our exploration team in carrying out Australia’s largest greenfields exploration programme in 2017.”
“We look forward to developing strong safety focussed relationships with both companies and the scale of the contracts awarded reflects our confidence in the proven experience of DDH1 and Ranger to be able to deliver on our expectation of sustainable and safe drilling services in support of our aggressive exploration ambitions.”
The Early Works programme, which commenced in December 2016, has now been completed with the commissioning of the Gruyere Village Stage 1, mobilisation of the Gruyere Village Stage 2 works, commencing construction of the Anne Beadell borefield and installation of early monitoring and dewatering bores at Gruyere.
The Gruyere JV Project Team has progressed through the major tendering process to settle on preferred tenderers for the major works packages, including Camp Management Services; Bulk Earthworks; Engineering, Procurement and Construction (EPC); and Power Supply contracts.
The first of these contracts was awarded to Compass Group Remote Hospitality Services Pty Ltd (Compass) for Camp Management Services in February 2017.
Gold Road and Gold Fields are strong supporters of local community engagement.
Desert Sands, a locally based business, were awarded a contract for earthworks which included ground works for the Gruyere Village Stage 1, upgrading of existing roads and tracks and installation of new tracks as part of the Early Works Programme.
Compass are also in the final stages of employing a number of people drawn from local communities as part of their commitment to local engagement.
Gold Road Managing Director and CEO, Ian Murray said “Gruyere is a low cost, long life gold mine which has the potential to provide significant benefits to a wide range of stakeholders. The Gruyere JV have selected contractors who are aligned with our commitment to local community engagement. As a pre‐requisite for contract award all of our contractors are required to identify and provide employment and contracting opportunities for our local communities. With our JV partner, we look forward to completing construction and producing gold bars.”
The 288‐room Gruyere Village Stage 1 was commissioned on 22 March with the first meal being served by the Compass team.
Following commissioning of the 288‐room Gruyere Village Stage 1, Desert Sands has completed the bulk earthworks for the Gruyere Village Stage 2 works and McNally Group Contracting Pty Ltd have mobilised their team to commence installation of the additional 360 rooms in April 2017. The complete 648‐room Gruyere Village is expected to be ready for occupancy towards the end of May 2017.
GR Engineering Services Limited (GRES) was awarded the contract in January 2017 to design, supply and install the Anne Beadell borefield pipelines and associated infrastructure. Commencement of construction of the Anne Beadell borefield is under way. On completion, this borefield will secure water supply for the construction works and provide potable water for the Gruyere Village.
EPC, Bulk Earthworks and Power Supply
The preferred contractors for the EPC, Bulk Earthworks and Power Supply contracts have been notified, with the contracts to be finalised and executed in April.
The preferred contractor for the EPC contract has been named as the Amec Foster Wheeler Civmec Joint Venture (ACJV). The EPC contract scope of work covers the detailed design, procurement and installation of the process plant, administration office, workshop, warehouse as well as the main water pipelines and powerlines to the borefield.
ACJV has commenced work on early project setup activities and are also working closely with the Project Team to finalise detailed management and mobilisation plans, ahead of contract award, also expected later in April.
The Project Team has completed the evaluation of the Grinding Mill options and has selected the FL Schmidt 26’ x 35.5’ Ball Mill with 15MW motors which was partially manufactured for Gold Fields prior to the cancellation of the Tarkwa Expansion Project 6 (TEP6) in Ghana. Availability of the TEP6 Ball Mill has been a major win for the Project, because apart from having cost benefits, also de‐risks the manufacturing delivery period of the Ball Mill.
Purchase orders for the SAG Mill and Primary Crusher are currently being finalised and will be awarded during April 2017.
MACA Civil Pty Ltd (MACA) has been confirmed as the preferred Bulk Earthworks contractor for developing the main access road, borefield access tracks, airstrip, process plant earthworks and tailings storage facility. Parent company MACA Ltd is a Tier 1 mining, civil construction and road infrastructure company. The Project Team and MACA continue to work on the detailed management and mobilisation plans, ahead of contract award, expected later in April.
The preferred Power Supply contractor will construct the ~225 kilometre gas pipeline from the existing Eastern Goldfields Pipeline to Gruyere, as well as build the critical power station infrastructure for the Project. The Power Supply is structured as a Build, Own and Operate contract for the pipeline and power station, with the preferred contractor currently working on the detailed design for both pieces of infrastructure, ahead of final contract award later in April.
The Gruyere JV will separately undertake negotiations for the Project gas supply in due course.