Gold Road Resources Completes Healthy Gruyere Quarter
THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) released its activity report for the quarter ending 30 September 2019.
Unsurprisingly the report focused on the company’s Gold Fields Joint Venture Gruyere gold mine, which is a global Tier 1 gold mine with a long operating life and forecast high margins, located east of Laverton, in Western Australia.
“Gruyere delivered another quarter of milestones as project development was completed within budget, commissioning of all processing circuits was completed, and commercial levels of production were attained at the end of the quarter and slightly earlier than guidance,” Gold Road Resources said.
The report declared the Gruyere ramp‐up to be progressing well, hitting commercial production at the end of September 2019, slightly ahead of guidance, producing 29,107 ounces of gold during the quarter.
This allowed the 2019 annual guidance range to reaffirmed at the upper end of 75,000 to 100,000 ounces and for All-In-Sustaining-Costs (AISC) to also remain unchanged for December 2019 quarter of between $1,050 to $1,150 per ounce.
As at 30 September 2019 Gold Road had cash of $65.3 million and bullion of $5.8 million on hand, net debt of $9.3 million, with $80.4 million of its $150 million facility drawn.
Gold Road has hedged 125,300 ounces at an average price of $1,837 per ounce for delivery between 1 October 2019 and 30 September 2022.
Gold Road sold 12,461 ounces of its share of the gold from Gruyere at an average price of $2,052 per ounce.
Further work has continued on the exploration front diamond drilling near‐completion at Gruyere to enable conversion of a large portion of the current Inferred Resource to the Indicated Resource category in support of future optimisation of the mine plan and mine infrastructure.
Recent drilling results include:
36.2 metres at 2.44 grams per tonne gold from 282.8m;
44.9m at 1.8g/t gold from 270.1m; and
73.4m at 1.8g/t gold from 288.6m.
At Gold Road’s 100 per cent-owned Yaffler South prospect, bedrock RC drilling intersected coherent and consistent mineralisation, yielding results of:
11m at 5.94g/t gold from 74m;
12m at 3.4g/t gold from 116m; and
12m at 2.71g/t gold from 59m.
This drilling program continued during the quarter and assays are expected in the December 2019 quarter.
Email: perth@goldroad.com.au
Web: www.goldroad.com.au
