Following a period of heavy rainfall, Gold Road Resources has resumed mining and processing operations at the Gruyere joint venture it shares with Gold Fields.
In mid-March, the gold miner said it continued to process stockpiles at the site despite incurring six months’ worth of rain in less than two weeks, with further impacts revealed in early April.
Now, the operation is back running with consumables being transported through the Northern Territory and Warburton to the east of Gruyere, all while repairs to the Great Central Road continue. The Great Central Road is Gruyere’s main supply route from the west.
“The changes to supply chains required to resume operations has been a Herculean task, requiring a round trip from Perth of greater than 9200 kilometres or sourcing from numerous alternative suppliers across eastern Australia,” Gold Road said.
“The combined efforts of the Laverton Shire, Gruyere personnel and Gold Fields supply team, suppliers to Gruyere, Yilka and other communities that have enabled a return to mining operations are greatly appreciated.”
Gold Road also revealed it had produced 64,323 ounces of gold at an all-in sustaining cost (AISC) of $2194 per attributable ounce during the period.
“Following the rain event, 2024 annual guidance for (the) Gruyere (joint venture) continues to be anticipated to be in the lower half of guidance of between 300,000 and 335,000 ounces (150,000 to 167,500 ounces attributable) and the upper half of attributable AISC of between $1900 and $2050 per ounce,” Gold Road said.
“Impacts of the rain event will result in lower than previously anticipated production in the June quarter.”
Gold Road sold 32,325 ounces at an average sales price of $3137 per ounce during the March quarter and held 1825 ounces in gold doré and bullion as of March 31.
These sales contributed to Gold Road producing $57.9 million in attributable operating cash flow from the Gruyere joint venture it shares with Gold Fields, as well as $5.5 million in free cash flow.
“Cash and equivalents were approximately $146.2 million with no debt drawn following payment of a $8.9 million, fully franked final dividend of 1.0 cent per share dividend for the six months to December 31 2023,” Gold Road said.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.