Gold Road Resources (ASX: GOR) and Gold Fields have released details of the updated mine plan for their world-class Gruyere joint venture, confirming the project’s status as a Tier 1 asset. First gold production remains on schedule for the June 2019 quarter. Gruyere’s life-of-mine annual production has been upgraded from 270,000ozpa to 300,000ozpa, based on mill processing throughput of 8.2mtpa, at average all-in sustaining costs of $1025/oz. At 30 November, Gruyere’s overall construction was 85% complete.
Highlights
-
Gruyere confirmed as a global Tier 1 gold mine[1] with a long life and forecast high margins
-
Life of mine average annual production plan has increased to approximately 300,000 ounces per annum (2016 Feasibility Study: 270,000 ounces per annum)
-
Average All‐in Sustaining Costs (AISC) over the life of mine forecast at A$1,025 per ounce (US$738 per ounce[2])
-
Mill processing throughput lifted from 7.5 Mtpa to 8.2 Mtpa resulting from previously announced and fully funded scope changes
-
Attila and Alaric Ore Reserves now incorporated into the production schedule
-
First gold production remains on target for June 2019 quarter
-
As at 30 November 2018, all major equipment and materials are on site with overall Project and EPC construction (process plant and associated infrastructure) 85% and 77% complete respectively
Gold Road Resources Limited (Gold Road) and Gruyere Mining Company Pty Ltd, a member of the Gold Fields Limited group (Gold Fields), provide an Updated Mine Plan and construction update following final designs and updated cost information for the Gruyere Gold Project (Project), which is being developed as a 50:50 Joint Venture approximately 200 kilometres east of Laverton in Western Australia.
The Updated Mine Plan is based on updates and enhancements to the Feasibility Study (FS) completed in October 2016. The FS was completed by Gold Road prior to entering into a 50:50 Gruyere development joint venture with Gold Fields in November 2016.
Construction of the Gruyere process plant and infrastructure continues to progress as expected, with on‐ schedule commissioning of the power station completed and mining operations commenced.
Gold Fields Executive Vice President Australasia, Stuart Mathews, said: “With first gold remaining on target for the June 2019 quarter, we have the confidence in Gruyere to be able to provide this update to the life of mine plan for this world‐class project. The Updated Mine Plan indicates an increase in annual average gold production to 300,000 ounces per annum. This update also provides more clarity around Gruyere’s AISC and gold production forecasts.”
Gold Road Managing Director and CEO, Duncan Gibbs, said: “It has been an incredible journey for Gold Road, since discovering Gruyere in 2013. For Gold Road the Updated Mine Plan means an attributable forecast share of approximately 150,000 ounces of gold on average per annum over the 12 year mine life. The cash flow Gruyere will produce from 2019 will be substantial and allow us to deliver tremendous value for shareholders, many of whom have backed us since before we made the discovery. Gold Road continue to work closely with Gold Fields, to safely and successfully conclude construction and commissioning of this world‐class gold operation.”
[1] Tier 1: greater than 10 year mine life; greater than 300,000 ounces per annum; greater than 3.5 million ounce Ore Reserve and costs at the lower end of the cost curve
[2] Exchange rate A$1.00 : US$0.72 (2016 FS: A$1.00 : US$0.73)
