The Gruyere gold joint venture expects to produce up to 120,000 ounces from the Western Australia operation this year after production starts in the June quarter.
Gold Fields and Gold Road Resources remain on track for the June quarter start and achieving commercial production during the second half of the 2019 calendar year.
They expect to ramp-up to full nameplate capacity to produce 300,000 ounces a year within six to seven months of first gold.
In 2019, the site’s output has been estimated to be between 100,000 and 120,000 ounces.
The JV’s all-in sustaining costs for 2019 after commercial production has been declared are expected to be between $1050 and $1150 an ounce, slightly higher than the forecast life-of-mine average ($1025).
Gold Road chairman Tim Netscher said, “It is good to see the Gruyere project develop from conceptual plans through feasibility study to a well-designed large scale, long-life, low-cost operation that is on the threshold of delivering substantial value for our shareholders.”
Gruyere’s capital cost estimate remains at $621 million, according to Gold Road. As of February 14, the JV had mined 185,000 tonnes of ore. First ore was mined at the site last month.