Gold Road reaps rewards from overperforming Gruyere

Image: Gold Road Resources

Gold Road Resources has reaffirmed its 2019 guidance range after early production at the Gruyere joint venture project in Western Australia slightly exceeded expectations.

The Gruyere joint venture (JV) between gold Road and Gold Fields produced 29,107 ounces during the September quarter.

Its throughput rates and gold recoveries have exceeded ramp up expectations, with the JV anticipating gold production to be at the upper end of guidance of 75,000 to 100,000 ounces this year.

“Gruyere delivered another quarter of milestones as project development was completed within budget, commissioning of all processing circuits was completed, and commercial levels of production were attained at the end of the quarter and slightly earlier than guidance,” Gold Road said in a media statement.

The JV mined a total of 2.1 million tonnes of ore during the September quarter at an average grade of 0.88 grams per tonne of gold for 59,662 contained ounces.

It processed 1.1 million tonnes of ore, with the plant initially commissioned on lower grade ore to avoid recovery losses.

Gold Road sold 12,461 ounces of its share of gold at an average price of $2052 an ounce, producing revenue of $25.6 million.

The JV has built an ore stockpile of 3.2 million tonnes, including nearly one million tonnes at 1.18 grams per tonne run of mine (ROM). This is scheduled for processing during the December quarter.

It is also anticipated that a drilling program at Gruyere will conclude this month, with a mineral resource update to be released early next year.

The exploration will enable a significant portion of Gruyere’s current inferred resource to be converted to indicated resource status, and support future optimisation of the mine plan and infrastructure.

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