Heavy rainfall delays first gold at Gruyere

The Gruyere development.

Poor weather has forced the Gruyere gold joint venture partners to delay their plan for first gold at the Western Australian development.

Gold Fields and Gold Road Resources now expect production at Gruyere to begin in the June 2019 quarter instead of the March 2019 quarter as previously forecasted.

The Yamarna region where Gruyere is located experienced abnormally high rainfall during the March quarter this year, leading to localised flooding and access constraints to certain parts of the project.

In addition to the production delay, the JV partners have also increased their cost estimate for the development to the upper end of the $506–$585 million forecast.

At the end of the March quarter, Gruyere’s project engineering and construction were 84 per cent and 44 per cent complete, respectively.

Gold Fields executive vice president Australasia Stuart Mathews said the project was progressing as well as possible in the circumstances.

“Despite the impact of the abnormal weather in the March quarter, action from all parties on site to seek solutions and deal with resulting delay in a positive manner, keeping the project as close to schedule as possible, has been extremely encouraging,” Mathews said.

Gruyere has been forecast to produce 270,000oz/y over a 13-year mine life.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.