THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported 2020 production guidance and a Resource upgrade for the Gruyere Joint Venture.
The Gruyere JV is a 50:50 deal with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group, which manages and operates the Gruyere gold mine.
Drilling completed by the JV in 2019 resulted in a 1.23 million ounce (29%) increase in Measured and Indicated Resources to 6.1 million ounces at the Gruyere JV through the upgrade of Inferred Resources to Indicated Resources.
The Gruyere JV Total Mineral Resource now stands at 154 million tonnes at 1.34 grams per tonne gold for 6.6 million ounces after mining depletion of 0.19 million ounces using an $1,850 per ounce gold price assumption.
The Resource upgrade is expected to provide the basis for an updated evaluation of open pit Reserves during 2020.
Gold Road’s attributable Mineral Resources increased from 3.3 million ounces to 3.6 million ounces (post depletion) largely through the addition of 100 per cent-owned Resources in 2019 from its satellite projects.
2020 annual guidance anticipates Gruyere gold production of 250,000 to 285,000 ounces (125,000 to 142,500 ounces GOR).
Gold Road’s all‐in‐sustaining costs (AISC) should fall between $1,100 to $1,200 per attributable ounce.
The company’s upcoming exploration budget sits at an impressive $26 million.
“The purpose of our 2019 drilling program beneath the Gruyere pit shell was to convert Inferred Resources into Indicated Resources,” Gold Road Resources managing director and CEO Duncan Gibbs said in the company’s announcement to the Australian Securities Exchange.
“The increase in Measured and Indicated Resources by 1.2 million ounces is meaningful and very encouraging.
“The Gruyere JV focus will now move to reviewing Reserves with the goal of growing mine life whilst maintaining a low AISC.
“2020 production and cost guidance affirms Gruyere’s position as a Tier 1 operation with significant cash generation.
“Our exploration team is well supported as we look to make meaningful discoveries in a surprisingly underexplored part of Western Australia.”