THE INSIDE STORY: For those unfamiliar with the journey of emerging gold miner Gold Road Resources (ASX: GOR) it is worth taking a quick look back at how the company has reached its current value.
Gold Road owns a healthy percentage of the Yamarna greenstone Belt, covering approximately 5,000 square kilometres of the Yilgarn Craton, located 150 kilometres east of Laverton in Western Australia.
The company has always considered the Yilgarn Craton to be the region most likely to become Australia’s next major gold region.
Its confidence in the region was heartened in 2010 when a report by Geological Survey of Western Australia found geology of the north eastern Yilgarn Craton – especially the Yamarna Terrane – to be similar in age and character to the Kalgoorlie Terrane.
There’s really no need to dwell on the success of Kalgoorlie as a gold producing region, except to acknowledge past gold production from the Kalgoorlie greenstone belt exceeds one hundred million ounces and continues to deliver new discoveries 130 years after its initial discovery.
Gold Road wasted little time in getting down to business at Yamarna and quickly established a JORC Mineral Resource of over 1.3 million ounces gold that subsequent studies demonstrated could be mined economically.
The company identified a pipeline of more than 100 gold prospects encountering grades up to 2,500 grams per tonne gold.
From this, six high-priority Gold Camp Targets were earmarked for prioritised exploration.
Drill testing of the first two of these Gold Camp Targets in late 2013 has resulted in four new discoveries.
In early 2013 Gold Road had entered an exploration joint venture with Sumitomo Metal Mining Oceania (a subsidiary of Sumitomo Metal Mining Co. Limited), in which Sumitomo Metal Mining can earn up to 50 per cent interest in Gold Road’s South Yamarna tenements, approximately 2,900 square kilometres.
The first Gold Camp Target Gold Road drilled tested in 2013 was the South Dorothy Hills Trend which yielded the YAM14 and the recent Gruyere gold discoveries.
The Gruyere discovery is situated some 25 kilometres north-east of the more advanced Central Bore project, and exhibits two different mineralisation styles not seen before in the Yamarna Belt.
Gold Road considers, that the results it has achieved so far at Central Bore and Gruyere confirms the potential for the Dorothy Hills Trend to host further substantial gold deposits.
It could be said the company has been almost solely responsible for keeping the resource drilling sector alive with up to seven drill rigs operating at any given time, providing a constant flow of drilling results encountering a succession of high-grade gold intersections.
Recent drilling identified a 3km long and up to 1.2km wide geochemical gold anomaly grading over 10ppb gold between the Gruyere deposit and the YAM14 prospect that is coincident with the Toto prospect area.
The anomaly sits along the trend of the Dorothy Hills Shear Zone, which hosts the Gruyere deposit that is only 2km north.
Internal to the greater anomalous zone are three parallel north‐south zones at greater than 15ppb gold of equivalent dimensions and gold intensity to the initial Gruyere discovery, which was identified using the same Interface RAB techniques.
“We have taken a great deal of confidence from the identification of this anomalism,” Gold Road Resources executive chairman Ian Murray told The Resources Roadhouse.
“It was identified during an Interface RAB program we recently carried out at the Toto prospect and it appears to be larger than both the original anomalies over Gruyere and YAM14.”
Although Toto has generated a great deal of excitement Gold Road has maintained a strong focus on working Gruyere up with the aim of announcing a maiden Mineral Resource estimate in the upcoming September quarter.
The company recently completed three deep diamond holes along strike of the deposit, which were successful in determining a south plunging orientation to the higher grade mineralisation located along the central/eastern zone of the Gruyere Tonalite.
“The holes did achieve what we had designed them to,” Murray said.
“That was to test the continuity of mineralisation along the strike of the deposit and to determine potential for deep extensions down plunge of the higher grade mineralisation we had previously identified between the North Zone of the deposit and the previous deepest intercept.”
“The exceptional grade continuity and scale of the Gruyere deposit continues to be demonstrated.”
Total mineralised intersections in these most recent diamond drill holes include:
243.3 metres at 1.2g/t gold from 45m;
302m at 1.31g/t gold from 139m; and
339.9m at 1.54g/t gold from 135.1m.
All holes ended in mineralisation.
“The continued expansion of the Gruyere deposit and the recent discovery of the Toto geochemical anomaly nearby have strengthened our belief in the large potential gold endowment of the South Dorothy Hills Trend,” Murray continued.
“We look forward to releasing the Gruyere deposit maiden Mineral Resource Estimate.
“We also can’t wait to get in and drill test the new Toto anomaly.”
In order to gain a deeper understanding of the hardness and competency of the different ore types present in the Gruyere deposit, Gold Road carried out a comminution test program earlier this year.
Approximate 500 kilograms of selected drill core samples from Gruyere, including samples of whole drill core representative of Oxide, Transitional and Fresh ore types underwent Unconfined Compressive Strength (UCS) determinations.
While this was happening samples of drill core representative of Saprock, Transitional and Fresh ore types underwent a comprehensive comminution test program consisting of:
Bond Abrasion Index determination;
SAG Mill Comminution Test, including SG determination;
Bond Rod Mill Work Index determination; and
Bond Ball Mill Work Index determination.
The test results demonstrated the Gruyere mineralisation host rock (Gruyere Tonalite) possesses rock properties that are amenable to conventional crushing and grinding circuits with no considered major risk or flaws.
This was just the results Gold Road was hoping for and armed the company with further confidence to progress to a Scoping Study.
“These results confirmed our understanding of the likely behaviour of the Gruyere mineralisation under processing conditions,” Murray said.
“They will play a very important role as a vital component of the information required for the Scoping Study.”
“We are determined to develop the Gruyere deposit into a major gold producing project and we will continue to diligently work through, and publish, the essential technical details required to develop an attractive business case for the continued progress of the Gruyere project to our loyal shareholders.”
Presently there aren’t too many junior exploration companies offering as much to look forward to as Gold Road.
The company’s immediate focus is the Gruyere project and the completion of a maiden Mineral Resource estimate scheduled for the September 2014 Quarter.
Once that has been ticked off the company expects to start a detailed Scoping Study on the project, incorporating metallurgical test work, geotechnical studies, environmental studies, and mining assessments, all of which it has already commenced.
Gold Road aims to have the Gruyere Scoping Study completed by the March 2015 Quarter.
There will be scarcely time for the company to catch its breath with further regional exploration already underway within the South Dorothy Hills Camp.
Regional scale reconnaissance program have been completed over two structural trends to the south (Gruyere Corridor) and southwest (MCS) of Gruyere.
And, of course, then there is Toto…
Gold Road Resources Limited (ASX: GOR)
…The Short Story
22 Altona Street
West Perth WA 6005
Ph: + 61 8 9200 1600
Fax: +61 8 9481 6405
Ian Murray, Ziggy Lubieniecki, Russell Davis, Martin Pyle
Van Eck 6%
SHARES ON ISSUE
Approx. 515.42 million
Approx. $142 million (at 10/7/14)