Gold Road Updates Gruyere Resources and Reserves

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) released its annual Mineral Resource and Ore Reserve statement as at December 2018.

Gold Road Resources made the point that all Resources and Ore Reserves are currently located within the Gruyere Project Joint Venture tenements.

The Gruyere JV is a 50:50 JV managed by Gruyere Mining Company Pty Ltd, a member of the Gold Fields Limited group.

Gold Road, on behalf of the Gruyere JV, manages all exploration activities and resource development to pre‐feasibility completion on the JV tenements other than the Gruyere gold project.

The company explained the Ore Reserve is derived from Gruyere, and the Golden Highway deposits which include Attila, Alaric, Argos and Montagne, all of which are in the Gruyere JV.

The Gruyere estimate is based on ongoing operational studies, while the Golden Highway estimate is based on Pre‐feasibility Studies (PFS) completed by Gold Road.

The Ore Reserve totals 97.2 million tonnes at 1.25 grams per tonne gold for 3.92 million ounces of gold.

Ore Reserves are reported on a 100 per cent basis at a $1,600 per ounce gold price (US$1,200 at US$0.75:A$1.00).

The Ore Reserve increased by 176,000 ounces (+5%) from the previous Ore Reserve at December 2017.

The Mineral Resource is derived from the Gruyere deposit, the Golden Highway deposits, YAM14 and Central Bore, all of which are in the Gruyere JV.

As at December 2018, the Mineral Resource is 155.37 million tonnes at 1.32g/t gold for 6.61 million ounces, an increase of 2 per cent from the Mineral Resource reported at December 2017.

Mineral Resources are reported on a 100 per cent basis and are constrained within optimised pit shells or underground stope shapes based on a $1,850 per ounce gold price and deposit‐specific modifying factors and cut‐off grades.

The Gruyere Mineral Resource decreased by 1.7 per cent to 139.56 million tonnes at 1.29g/t gold for 5.78 million ounces due to changes to the geology model and estimation methodology.

“Positive exploration results and excellent technical work by the Gold Road exploration and Gruyere JV operational teams has increased the reserve by five per cent to almost four million ounces, including the Maiden Ore Reserve additions on the Golden Highway,” Gold Road Resources managing director and CEO Duncan Gibbs said in the company’s announcement to the Australian Securities Exchange.

“Encouragingly the Golden Highway Mineral Resource increased by 17 per cent to almost 700,000 ounces, and the addition of a robust high‐grade underground resource at Central Bore increases the mineralisation options available to the Gruyere JV.

“The increased reserve grade and ounces has the potential to add further value to the recently updated Gruyere Mine Plan.”