Gold Road Resources expects gold production at the Gruyere mine in Western Australia to reach up to 300,000 ounces this year.
The company has delivered its three-year production outlook for the Gruyere joint venture (JV) off the back of its 2021 production guidance.
Grueyere produced 129,087 attributable ounces in 2020, which is set to increase by 35 to 50 per cent within the next three years to hit a total production of around 350,000 ounces.
The Gruyere JV is owned by Gold Fields and Gold Road subsidiary Gruyere Mining Company, with each having a 50 per cent stake in the mine.
Gold Road managing director and chief executive Duncan Gibbs said the production outlook and 2021 guidance were in line with its vision to become a long-life gold producer.
“Gold Road aspires to be a long-life low cost and sustainable gold producer of circa 300,000 ounces per annum,” he said.
“The 2021 growth strategy aligns with this and focusses on realising shareholder value through optimising and growing Gruyere production at minimal cost as well as maintaining our strong focus on meaningful organic growth from our 100 per cent owned Yamarna exploration project.”
Gold Road stated that minimum capital expenditure was required to reach the new production target within the next three years.
Outside of the Gruyere JV, Gold Road has a $27 million exploration budget in 2021, which will continue prospecting at the Yamarna and Yandina projects in Western Australia.
Gold road will allocate $20 million for 147,000 metres of planned drilling to target gold discoveries at the Yamarna Belt.
Gold Road expects to have all-in-sustaining costs (AISC) of $1225 to $1350 per ounce this year, compared with $1273 per ounce in 2020.