Gold Road Resources confirms long life for Gruyere gold project

THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) has completed the Pre‐Feasibility Study (PFS) for the development of the company’s 5.62 million ounce Gruyere project, east of Laverton in Western Australia.

Gold Road claims the PFS to have confirmed the Gruyere project to be one of Australia’s best undeveloped gold deposits.

According to the company the PFS has indicated the project to be technically sound and financially viable, being capable of generating over $1 billion in free cash flow (pre‐tax) over an initial 12‐year project life.

The total forecast capital cost is estimated to be $455 million, which includes a project contingency of $35 million.

The PFS produced a Whittle‐optimised open pit shell and Ore Reserve modelled at $1,400 per ounce.

All financial analysis was undertaken using an Australian Dollar $1,500 per ounce gold price, representing the five‐year historic average.

Following the completion of the PFS, Gold Road has been able to declare a Maiden Ore Reserve for Gruyere of 3.17 million ounces, which supports an average annual gold production of 265,000 ounces over the life of the mine.

The company boasted that production at this rate would elevate it into the ranks of Australia’s mid‐tier gold producers.

Based on the positive PFS outcome, the Gold Road Board has approved the immediate progression to a Feasibility Study (FS) on the project to further define and support the case for project funding and development.

Gold Road executive chairman Ian Murray said in the company’s announcement to the Australian Securities Exchange.
“Following the detailed work undertaken last year in the Options Study that determined the best development case for the Gruyere project, the PFS has now confirmed the project’s robust economics and technical simplicity.

“While the PFS suggests a substantial 12‐year project life, the demonstrated exploration potential of Gruyere and the surrounding Yamarna region means there is significant potential to extend the life beyond that initial term.

“None of this potential upside has been included in the scope of the PFS.

“We are now aiming to complete the FS on Gruyere by the end of 2016, which will allow Gold Road to make an investment decision in early 2017.

“Opportunities to optimise and enhance the financial performance of the project will be thoroughly assessed during this feasibility stage.”

Email: perth@goldroad.com.au

Website: www.goldroad.com.au