INSIDE UPDATE: Leading into 2018, Gold Road Resources (ASX: GOR) concentrated on identifying targets for a prioritised greenfields exploration program.
As result, Gold Road will spend approximately $23 million drilling to test the highest‐ranked prospects across its 100 per cent owned Yamarna tenements and the Gruyere Project Joint Venture (Gruyere JV) with Gold Fields Limited.
Gold Road’s ‘Exploration Pipeline Model’ ranks the quality of identified targets within progressive milestone stages ‐ Milestone 1 being the earliest stage and Milestone 5 being the most advanced.
Recent drilling focused primarily on Milestone 3 targets including:
Diamond and RC drilling on the Wanderrie Supergroup Trend; and
Diamond and RC drilling at the Smokebush Camp.
Gold Road anticipates undertaking further diamond and RC testing of one of the highest‐ranked Milestone 3 targets, Ibanez, within the Corkwood Camp.
Two aircore rigs began drilling at Yamarna towards the end of March testing earlier stage (Milestone 1 and 2) targets.
Projects earmarked for aircore drilling in coming months include:
Tamerlane, a Milestone 2 target where drilling has commenced on the Yamarna Shear trend north of the Wanderrie Camp;
Kingston North within the Spearwood Camp that had drilling scheduled for mid‐April to infill and extend a gold geochemical anomaly identified at the end of 2017;
Smokebush Regional is a high-ranked Milestone 1 target, within the Smokebush Camp that has drilling scheduled for May to test the broader region north of the highly ranked Smokebush prospect;
The highest ranked Milestone 1 target is Bloodwood Camp where first pass drilling is scheduled for late May; and
The Milestone 1 Romano Camp target north of Gruyere is to undergo first pass drilling expected to commence mid‐year.
In February, Gold Road signed a Sale Agreement to acquire Sumitomo Metal Mining Oceania Pty Ltd’s 50 per cent interest in the South Yamarna project for $7 million in cash.
The transaction is expected to be concluded in May and will return Gold Road to 100 per cent ownership of the South Yamarna tenement package, which contains some of the highest ranked Camp Scale and bedrock drilling targets identified by Gold Road in the district.
Most of Gold Road’s 2018 exploration budget ($17 million) will be spent on the Yamarna tenements, where four drill rigs have commenced on a campaign designed to maximise the chances of discovering additional multi‐million-ounce gold deposits capable of supporting development of stand‐alone mining operations.
Construction of the Gruyere gold project is progressing, with project engineering and overall construction 84 per cent and 44 per cent complete respectively, and EPC construction 17 per cent complete at the end of March.
A review of the project cost estimate and schedule, the Definitive Estimate, indicated that recent above average rainfall is likely to hold up first gold being poured at the project and increase capital costs.
First gold production at Gruyere is now anticipated early in the June 2019 quarter.
The $6 million Gruyere JV exploration drilling program will focus on resource definition drilling on additional high‐margin satellite deposit to supplement the Gruyere mine schedule.
Gold Road updated the Yamarna Mineral Resource and Ore Reserve statement.
The Ore Reserve for Yamarna increased by 6.3 per cent to 97.35 million tonnes at 1.2 grams per tonne gold for 3.74 million ounces of gold.
This is associated largely with maiden reserve declarations for satellite deposits at Attila and Alaric, combined with a minor increase at Gruyere.
Following a Pre‐feasibility Study into developing Attila and Alaric as open pit mines to provide satellite feed to the Gruyere process plant, a combined Ore Reserve of 3.59 million tonnes at 1.55g/t gold for 179,000 ounces of gold was established for these deposits.
The Ore Reserve at Gruyere increased by 44,000 ounces of gold following modifications to the mine design submitted for the operational plan and now stands at 93.76 million tonnes at 1.18g/t gold for 3.56 million ounces of gold.
Gold Road added a third joint venture agreement in Western Australia’s South‐west Terrane with Cygnus Gold (ASX: CY5), comprising four tenement applications within the Yandina Shear, which is known to host gold mineralisation elsewhere in the South‐west Terrane.
The joint venture terms commence on a 75 per cent Gold Road and 25 per cent Cygnus ownership basis.
Gold Road Resources (ASX: GOR)
…The Short Story
26 Colin Street
West Perth WA 6005
Ph: +61 8 9200 1600
Tim Netscher, Ian Murray, Justin Osborne, Sharon Warburton, Brian Levet