Gold Road Resources has reported record production at the Gruyere joint venture (JV) project with Gold Fields in Western Australia, stating that COVID-19 had no material impact on its output.
The JV delivered 71,685 ounces of gold during the June quarter and is on track to meet its full-year guidance of 250,000–285,000 ounces.
It celebrated Gruyere’s first 12 months of production in June, having produced 230,590 ounces since the first pour of gold.
The amount of ore processed (2.2 million tonnes) during the quarter also exceeded nameplate production rates. This was achieved at a head grade of 1.06 grams per tonne and a gold recovery of 93.1 per cent.
Gold Road, however, expects a lift in all-in sustaining costs (AISC) for this year, up from the previous guidance of $1100–$1200 to $1150–$1250.
This is driven by higher royalty payments attributable to an appreciating gold price, increased maintenance costs, tailings dam expenditure and COVID-19-related expenditure.
The JV started construction of the tailings dam lift in the previous quarter, with the project now approximately 65 per cent complete.
Gold Road expects to complete mobilisation of the second fleet of new generation Komatsu 830E trucks in the third quarter, with CAT 785 trucks already on-site for stockpile rehandling.
The company also continued its exploration program at the Gruyere site, Yamarna project and Lake Grace JV with Cygnus Gold in Western Australia during the three-month period.