Mid-tier gold production and exploration company Gold Road Resources Limited (ASX: GOR) has presented an updated three-year mine production outlook for the Gruyere gold mine, in WA’s north-eastern Goldfields.
The Gruyere JV is a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group (Gold Fields), which manages and operates the Gruyere Gold Mine.
The Gruyere JV has completed feasibility level studies on the seven-stage Gruyere pit design, including metallurgical and geotechnical studies that underpin the Life-of-Mine until 2032. Additionally, the Gruyere JV is at an advanced stage of tendering a mining contract, with several industry leading contractors submitting competitive bids. The current contract concludes in the March 2024 quarter.
Gold Road has also confirmed that Gruyere has produced one million ounces, less than four years since production commenced in June 2019.
- Three-year production outlook
- Gruyere’s 3-Year production outlook ranges between 335,000 and 375,000 ounces per annum (100% basis).
- Production to increase on prior years, due to higher head grades and improved throughput following commissioning of a third pebble crusher in late 2023.
- The production outlook requires minimal growth capital. AISC outlook continues to offer strong margins at current spot gold prices.
- Life-of-mine reaffirmed to 2032
- Sustainable production at ~350,000 ounces per annum rate reaffirmed to 2032 through a seven-stage mine plan.
- Feasibility level studies for the Golden Highway resources are scheduled for 2023, in preparation for mining, which is anticipated to commence in early 2026.
- More than three million ounces of mineral resources defined beneath the Gruyere Ore Reserve present an opportunity to extend Gruyere’s mine life beyond 2032.
- Five-year mining contract
- Gruyere JV is in advanced stages of a competitive mining contract tendering process.
- Mining contract set to provide a strong working partnership for a further five-year period, with options to extend for the current life of mine.
- One-millionth ounce celebrated
- Gruyere celebrated its one-millionth ounce of gold production on 3 April 2023.
- With the strong production outlook, Gruyere is set to deliver 2 million ounces during 2025. Once Gruyere has produced 2 million ounces, Gold Road will receive a 1.5% net smelter return royalty from Gold Fields on its 50% share of production. This is in addition to Gold Road’s 50% share of ongoing gold production.