Gold Road Resources Limited has celebrated its one-millionth ounce of gold production and presented an updated three-year mine production outlook for the Gruyere gold mine, in WA’s north-eastern Goldfields.
The Gruyere JV is a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group, which manages and operates the Gruyere Gold Mine.
The Gruyere JV has completed feasibility level studies on the seven-stage Gruyere pit design, including metallurgical and geotechnical studies that underpin the Life-of-Mine until 2032. Additionally, the Gruyere JV is at an advanced stage of tendering a mining contract, with several industry leading contractors submitting competitive bids. The current contract concludes in the March 2024 quarter.
Gold Road has also confirmed that Gruyere has produced one million ounces, less than four years since production commenced in June 2019.
Gruyere’s three-year production outlook ranges between 335,000 and 375,000 ounces per annum (100% basis). Production is set to increase on prior years, due to higher head grades and improved throughput following commissioning of a third pebble crusher in late 2023.
The production outlook requires minimal growth capital, with the AISC outlook continuing to offer strong margins at current spot gold prices.
With the strong production outlook, Gruyere is set to deliver two million ounces during 2025. Once Gruyere has produced two million ounces, Gold Road will receive a 1.5 per cent net smelter return royalty from Gold Fields on its 50 per cent share of production. This is in addition to Gold Road’s 50 per cent share of ongoing gold production.
The Life-of-mine has also been reaffirmed to 2032 along with a sustainable production at ~350,000 ounces per annum rate to 2032 through a seven-stage mine plan.
However, more than three million ounces of mineral resources defined beneath the Gruyere Ore Reserve present an opportunity to extend Gruyere’s mine life beyond 2032.
Feasibility level studies for the Golden Highway resources are scheduled for 2023, in preparation for mining, which is anticipated to commence in early 2026.