Gold Road Resources Limited has provided an update on 2019 production guidance for the Gruyere Gold Project, which is located 200 kilometres east of Laverton in Western Australia.
The Gruyere Joint Venture (Gruyere JV) is a 50:50 joint venture between Gold Road and Gruyere Mining Company Pty Ltd – a member of the Gold Fields Limited Group.
Under the Agreement, Gold Fields will manage the development of Gruyere and will also manage the operation of the mine, while Gold Road retains responsibility for exploration on the Joint Venture tenements.
Construction on the project commenced at the beginning of 2017 and the project remains on schedule to deliver first gold in the June 2019 quarter.
Gold production for the 2019 calendar year is estimated to range between 100,000 and 120,000 ounces (on a 100 per cent basis).
Gold Road’s share of guided production is estimated to be 50,000 to 60,000 ounces.
Once commercial production is declared, all-in sustaining costs for the remainder of 2019 are expected to fall between AU $1,050 and AU $1,150, which is slightly higher than the forecasted life-of-mine average (AU$1,025 per ounce) as production ramps up to full nameplate capacity.
The final forecast capital (FFC) cost estimate remains at $621 million (on a 100 per cent basis), with Gold Road anticipating funding a total share of the FFC cost of $284 million.
Gold Road has stated that a substantial stockpile of ore is expected in preparation for initial production to facilitate a smooth ramp-up for the year.
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 sustainable value for shareholders.
“We look forward to pouring first gold in the June 2019 quarter,” he said.
More information on the Gruyere Gold Project can be found here.