Gold Road Resources (ASX: GOR) has used its annual mineral resource and ore reserve statement to declare a significant increase in both number of ounces at the world-class Gruyere gold project and the resource grade. Extensive work including drilling up Golden Highway deposits over the past 12 months has enabled Gold Road to increase the Gruyere ore resource by 2% to 6.61 million ounces and the ore reserve by 5% to 3.92moz. The ore reserve grade has been increased by 5% to 1.24g/t gold. Gruyere, being developed in a 50-50 JV with Gold Fields, is in the final stages of construction, with first gold production expected in the June quarter. Over the 12-year life of the mine, Gruyere is forecast to produce on average 300,000oz a year.
Highlights
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Ore Reserve ($1,600/oz) Increased 5% to 3.92 million ounces (+176,000 ounces)[1]
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Gruyere Deposit:
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Ore Reserve grade increased 5% to 1.24 g/t Au (not included in the current life‐of‐mine plan)[2]
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Proved Ore Reserve increased 15% to 604,000 ounces
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Golden Highway Deposits:
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Additional Ore Reserves of 130,000 ounces (available for future mine plans)
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Maiden Ore Reserves declared at Argos and Montagne
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Mineral Resource ($1,850/oz) increased 2% to 6.61 million ounces (+103,200 ounces)
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Gruyere Mineral Resource decreased 1.7% (‐97,000 ounces)
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Golden Highway Mineral Resource increased 17% (99,300 ounces)
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Central Bore Underground Mineral Resource added at 13.05 g/t Au (101,300 ounces)
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Increased grade of Gruyere Reserve and additional 0.13 million ounces are complementary to the 2018 life‐of‐mine plan
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Gold Road attributable Ore Reserve now totals 1.96 million ounces, with a Mineral Resource of 3.31 million ounces
Well‐funded mid‐tier gold development and exploration company, Gold Road Resources Limited (Gold Road or the Company) presents the Mineral Resource and Ore Reserve statement as at December 2018. All Mineral Resources and Ore Reserves are currently located within the Gruyere Project Joint Venture (Gruyere JV) tenements and are reported on a 100% basis unless otherwise specified with 50% attributable to Gold Road (Figure 1). The Gruyere JV is a 50:50 joint venture managed by Gruyere Mining Company Pty Ltd, a member of the Gold Fields Limited group (Gold Fields). Gold Road, on behalf of the Gruyere JV, manages all exploration activities and resource development to pre‐feasibility completion on the JV tenements other than the Gruyere Gold Project (Gruyere).
The 2018 exploration campaign targeted additional higher grade deposits along the Golden Highway trend to supplement the 12 year life‐of‐mine plan already established for the Project. Construction and mining at Gruyere is on schedule, with mining and stockpiling of ore commencing in January 2019[3]. Mining depletion is yet to be reported.
Commenting on the increase to the annual statement, Duncan Gibbs, Managing Director and CEO said “Positive exploration results and excellent technical work by the Gold Road exploration and Gruyere JV operational teams has increased the reserve by 5% to almost 4 million ounces, including the Maiden Ore Reserve additions on the Golden Highway. Encouragingly the Golden Highway Mineral Resource increased by 17% to almost 700,000 ounces, and the addition of a robust high‐grade underground resource at Central Bore increases the mineralisation options available to the Gruyere JV. The increased reserve grade and ounces has the potential to add further value to the recently updated Gruyere Mine Plan.”
[1] Mineral Resource and Ore Reserves are reported on a 100% basis unless otherwise specified, 50% is attributable to Gold Road and 50% attributable to Gold Fields. Changes to values are compared to the December 2017 annual statement (ASX announcement dated 21 February 2018)
[2] ASX announcement dated 6 December 2018
[3] ASX announcement dated 29 January 2019
