Gold Road Resources (ASX: GOR) has released its quarterly results for the period ending March 31. At the Yamarna project, a $23 million exploration budget was allocated to testing of the highest ranked greenfields prospects across both the project and the Gruyere joint venture project. At Gruyere, ore reserves increased by 6% to 3.74 million ounces of gold following declaration of maiden reserves for Attila and Alaric deposits. Also during the quarter, finance facilities totalling $150 million was established and discretionary gold hedging capacity was increased.
HIGHLIGHTS
Yamarna Exploration
- Ranking and rating of all explorations targets completed with the 2018 drilling programme underway
- A $23 million exploration budget is allocated to testing of the highest ranked greenfields prospects across 100% owned Yamarna tenements and Gruyere JV
- Yamarna (100%):
- Budget of $17 million allocated to the discovery of new multi‐million ounce gold camps within the Yamarna Greenstone Belt
- Early diamond and RC drilling programmes focussed on Wanderrie Supergroup Trend and Smokebush “Milestone 3” targets
- Aircore rigs mobilised at the end of March with drilling focussed on Milestone 2 targets at Tamerlane and Kingston North
- Gruyere JV (50%):
- Ore Reserve increased by 6% to 3.74 million ounces of gold following declaration of maiden reserves for Attila and Alaric deposits
- Maiden Mineral Resource of 0.87 million tonnes at 1.21 g/t Au for 34,000 ounces of gold declared for YAM14 deposit
- Budget of $6 million is allocated to the definition drilling of high‐margin satellite deposits to add to the Gruyere mine resource inventory
- RC drilling commenced at the Montagne “Milestone 4” project
Gruyere Gold Project
- At the end of March, overall Project engineering and construction were 84% and 44% complete respectively, and EPC (process plant and associated infrastructure) construction was 17% complete
- Previously flagged abnormal weather events in the March quarter have impacted schedule and costs
- Provisional estimate from the recently completed Definitive Estimate indicates some schedule delay and capital cost increase
- First gold production likely to be early June 2019 quarter, previously forecast late March 2019 quarter
Corporate
- Finance facilities totalling $150 million established and discretionary gold hedging capacity increased
- Additional 45,000 ounces of gold forward sales completed at an average price of $1,728 per ounce, bringing the total to 70,000 ounces at an average of $1,720 per ounce
- Sale agreement signed to acquire Sumitomo Metal Mining Oceania Pty Ltd’s 50% interest in the South Yamarna Project for $7 million
- Third exploration joint venture entered into with ASX listed Cygnus Gold on Yandina Project
- Cash, term deposits and current receivables of $224.1 million at 31 March 2018, with no debt drawn.