Gold Road Estimates New Wholly-Owned Yamarna Gold Resources

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported the first 100 per cent company‐owned resource addition since it entered the Gruyere Joint Venture.

Encounter Resources Identifies New Copper-Gold Drill Targets at Lamil

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) recently completed IP and AEM surveys at the company’s 100 per cent-owned Lamil copper-gold project in the Paterson Province of Western Australia.


Gold Road Estimates New Wholly-Owned Yamarna Gold Resources

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported the first 100 per cent company‐owned resource addition since it entered the Gruyere Joint Venture.

The Mineral Resource of 3.5 million tonnes at 2.62 grams per tonne gold for 297,600 ounces was estimated at the Gilmour and Renegade deposits, both 100 per cent-owned by Gold Road.

The Gilmour Maiden Mineral Resource totals 2.6 million tonnes at 3.09g/t gold for 258,400 ounces, with 0.8 million tonnes at 5.2g/t gold for 120,000 ounces, or 46 per cent of contained ounces, classified as an Indicated Resource.

This makes Gilmour the third largest and second highest grade deposit so far discovered on the Yamarna Belt.

The Gilmour Maiden Mineral Resource is located 55 kilometres, by road, south of the Gruyere Mine, which means the open pit and underground Mineral Resources could be developed by Gold Road and processed at Gruyere via toll treatment provisions under the Gruyere JV agreement.

The Gruyere development option provides a pathway to monetise the discovery and realise value from Gold Road’s exploration program.

The Renegade deposit, previously reported as Khan North, has been re‐estimated as an Inferred Mineral Resource of 0.9 million tonnes at 1.3g/t gold for 39,200 ounces.

The new resource estimate follows detailed geological interpretation and optimisation for open pit extraction, applying appropriate modifying factors and a gold price assumption of $1,850 per ounce.

Renegade is located just 35 kilometres by road from the Gruyere Mill, and is adjacent to the Gruyere Main Access Road.

Like Gilmour, Renegade could also potentially add value to Gold Road through toll treatment in accordance with the terms of the Gruyere JV agreement.

“The Maiden Mineral Resource for Gilmour represents the first gold deposit identified at Yamarna outside of the original discoveries on the Golden Highway, and our Gruyere discovery which is now being mined in Joint Venture with Gold Fields,” Gold Road executive director ‐ exploration & growth Justin Osborne said in the company’s announcement to the Australian Securities Exchange.

“The significance in being the third largest, and second highest grade deposit so far discovered at Yamarna is considerable.

“The relatively high‐grade demonstrates a diverse endowment consistent with our belief in the Belt having potential to host multiple deposits varying in style, size and grade as seen in other major Greenstone Belts in Western Australia ‐ the main difference at Yamarna is it remains significantly underexplored.

“We are now applying the improved understanding from our Gilmour exploration programme to assist our ongoing targeting of greater than one million ounce deposits on the considerable Yamarna tenement holding.”








Calidus Resources Confirms Robustness of Warrawoona Pit

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) announced further results from within the planned open pit at the company’s Warrawoona gold project in the Pilbara region of Western Australia.

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.

Perseus Mining Shuffles Seats at Boardroom Table

THE DRILL SERGEANT: Perseus Mining (ASX: PRU) made its intentions known that it will be proposing the appointment of David Ransom to the role of non-executive director at the company’s upcoming Annual General Meeting.


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.






Golden Rim Resources Accelerates Kouri Exploration

THE DRILL SERGEANT: Golden Rim Resources (ASX: GMR) is making exploration campaign progress at the company’s Kouri gold project in Burkina Faso.

Cygnus Gold and Gold Road JV Operating Smoothly

THE DRILL SERGEANT: Cygnus Gold (ASX: CY5) has been kept busy of late at the company’s Joint Ventures with Gold Road Projects, a wholly-owned subsidiary of gold producer Gold Road Resources (ASX: GOR).

Comet Resources Identifies Priority Graphite Targets

THE DRILL SERGEANT: Comet Resources (ASX: CRL) has had an aerial electromagnetic survey (EM) carried out over the company’s Springdale graphite project in southern West Australia.

AMEC’s Overtures Result in WA Government Lithium Sector Review

IN THE LOBBY: The Western Australian lithium sector received a recent boost in the form of a supportive announcement from the State government.

Cygnus Gold and Gold Road JV Operating Smoothly

THE DRILL SERGEANT: Cygnus Gold (ASX: CY5) has been kept busy of late at the company’s Joint Ventures with Gold Road Projects, a wholly-owned subsidiary of gold producer Gold Road Resources (ASX: GOR).

The Cygnus Gold – Gold Road JVs include the Lake Grace JV and the Wadderin and Yandina JVs covering an area of more than 5,000 square kilometres in the Wheatbelt region of Western Australia along the Yandina Shear, a largely unexplored regional structure interpreted to control the location of gold deposits such as Tampia, Griffin’s Find and Lake Magenta.

The current focus on the Lake Grace JV is the Hammerhead prospect, a target identified from regional aircore drilling of a zone of surface gold anomalism coincident with the prospective Yandina Shear Zone.

Recent aircore drilling at the Hammerhead prospect returned additional widespread, anomalous gold including:

3 metres at 0.35 grams per tonne gold from 52m; and

6m at 0.28g/t gold from 56m to end of hole.

Cygnus explained these intersections are associated with widespread anomalous gold pathfinder elements such as arsenic, copper, and molybdenum, and are in addition to the results reported in earlier announcements.

Anomalous gold and pathfinder anomalism have now been returned from four of eight broad spaced drill lines through transported cover over nearly 15km strike length of interpreted greenstone rocks at Hammerhead.

Work being carried out at the Wadderin and Yandina JVs is also targeting gold mineralisation associated with the regional Yandina Shear.

Due to the sparse outcrop in these large tenement packages exploration has been driven by detailed geological interpretation of geophysical datasets to map out the geology and structures thought to control gold mineralisation.

In addition to ongoing targeting at Hammerhead, recent exploration activity has included regional targeting on the Wadderin and Yandina JVs, which has identified a number of high priority targets for drill testing.

Cygnus indicated it is now planning a program to extend and infill the AC drill coverage at Hammerhead as well as deeper reverse circulation (RC) drilling under the best results to date.

The AC program will include first pass traverses across the higher priority Wadderin and Yandina targets.

These programs are planned to commence immediately post-harvest in late Q4.

“Even though early stage, the Hammerhead prospect is now a focus area on the Lake Grace JV where drilling programs are planned to commence over the coming months,” Cygnus Gold managing director James Merrillees said in the company’s announcement to the Australian Securities Exchange.

“Other targets on the Wadderin and Yandina JVs fill a pipeline of Joint Venture funded projects to be tested over the coming 6 to 12 months.

“I’d like to thank our partners Gold Road and acknowledge their support as we aim to emulate their success at Yamarna in the Southwest, an equally underexplored area within the prolific Yilgarn Craton.”

Gold Road has now reached the expenditure required to earn 51 per cent of the Lake Grace Earn-in project, and has elected to form a JV to earn an additional 24 per cent interest (75% in total) in the project by spending a further $500,000 within 18 months.

On the Wadderin Earn-in project, Cygnus and Gold Road have agreed to extend the minimum expenditure time required to achieve the $900,000 until December 31 2019 and extend the earn in period to 31 December 2020 where Gold Road is required to spend $1.6 million on exploration expenditure to earn 51 per cent.

All other terms remain unchanged.

The Hyden group of tenements were granted during September and these will be added to the existing Yandina JV.





Gold Road Resources Keeps Exploration Drills Spinning

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported on diamond and reverse circulation drilling underway across the company’s exploration tenements in Western Australia.

In the Southern Project Area of the company’s 100 per cent-owned Yamarna project a total of eight diamond and 13 RC drill holes were undertaken to support the estimation of a potential Maiden Mineral Resource at Gilmour.

Gold Road reported the program extended its knowledge of mineralisation both along strike and at depth and defined the detail of the geology adjacent to the Waters Fault.

The mineralisation was predictably intersected confirming initial geological interpretations.

Visible gold has been observed in association with a laminated quartz vein in six of the new eight diamond drill hole.

Best intersections returned included:

2.06 metres at 12.4 grams per tonne gold from 357.2m;

4m at 4.96g/t gold from 199m;

7m at 2.2g/t gold from 146m; and

2.78m at 5.25g/t gold from 401.43m.

At the company’s 50 per cent-owned Gruyere Mine Joint Venture a drilling program was commenced to extend the Indicated Resource below the current Ore Reserve pit design, and delineate the limits of mineralisation at the southern end of the Gruyere Porphyry.

Extending the limits of the Indicated Resource will allow for strategic evaluation and mine optimisation applying improvements to modifying factors such as improved pit‐slope angles, operational cost reductions, and gold price.

Commencing these studies now will position the JV to potentially bring forward additional value in the mine plan.

This information will be used in Ore Reserve updates planned for later this year.

Confirmation of the southern limits of economic mineralisation will enable finalisation of infrastructure locations, such as the ROM Pad or waste dumps.

“Our first drilling for 2019 has given us a greater understanding on the geological controls to economic gold mineralisation on the Gilmour and Morello prospects which we are now applying to make further discoveries along the same trend,” Gold Road Resources executive director ‐ exploration & growth Justin Osborne said in the company’s announcement to the Australian Securities Exchange.

“At Morello we identified several potential shoots to be assessed with further drilling.

“We are embarking on a new drilling program at Gruyere to allow us to further optimise and increase the near-term value to be delivered from the mine as we edge closer to our initial gold pour and subsequent commercial production.”





Gold Road Resources and Gruyere JV Closer to Gold Goal

THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) is close to commissioning the company’s Gruyere gold project Joint Venture with Gold Fields Limited.

Gold Road informed the market that the Gruyere process plant is nearing completion, currently at 97 per cent completion, with finishing works in progress across the site.

Recent activity on site has included:

The Primary Crushing system was ore commissioned in January delivering material to the coarse ore stockpile and is in the process of being handed over to the operations team.

The Gruyere Power Station and high voltage sub-stations across the site are fully commissioned, enabling power supply for commissioning activities.

Water systems around the process plant are fully commissioned as is the Yeo Borefield in the southern section which has delivered water to the main transfer station ahead of the process plant.

Dry commissioning activities are in progress including the coarse ore reclaim and mill feed circuits, the grinding area SAG and Ball Mills, CIL, thickeners and reagents areas.

Gold Road declared Gruyere is on target for first gold production in the second half of the June 2019 quarter and within the previously announced Final Forecast Capital Cost estimate of $621 million (100 per cent basis) of which $284 million is attributable to Gold Road.

Mining activities scaled up to double shift operations in January, as scheduled, with total mining movement tracking ahead of plan.

From the start of construction to the end of the March 2019 quarter, Gruyere has mined 4.9 million BCM (bank cubic metres) of material from the open pit as budgeted in the Gruyere Feasibility Study.

To date, approximately 800,000 tonnes of ore have been mined and stockpiled in preparation for the process plant start-up.

The company explained that the substantial ore stockpile largely de-risks mining related aspects of the operation during the commissioning and ramp-up phases.





Gilmour Gold on Gold Road Horizon

THE INSIDE STORY: As the highly-anticipated Gruyere gold mine moves closer to commissioning, Gold Road Resources (ASX: GOR) is making exciting progress at the company’s 100 per cent-owned Gilmour deposit.

Gold Road Resources and its 50:50 Joint Venture partner Gruyere Mining Company Pty Ltd, a member of the Gold Fields Limited group, have made steady progress on construction and commissioning for the Gruyere gold project, located approximately 200 kilometres east of Laverton in Western Australia.

Late last year, the JV announced an updated mine plan for Gruyere based on updates and enhancements to the Feasibility Study (FS) that had been completed by Gold Road back in 2016, before it had struck the JV deal with Gold Fields in November that year.

The new Gruyere mine plan is based on what the JV has learnt while moving the project through the construction stages as it prepares to push the button for a planned safe and efficient start‐up.

The updated mine plan incorporates a new five-staged pit design, which the JV expects to provide lower risk delivery of ore supplies to Gruyere’s processing facilities, while maintaining a similar grade and strip ratio profile identified by the 2016 FS.

The Gruyere JV has invested a substantial amount of time and money into growth projects such as its ongoing exploration on the Gruyere JV tenement areas and pre‐feasibility studies being carried out on the Golden Highway deposits, all located within a 25-kilometre radius from the Gruyere processing facilities.

This has added 3.6 million tonnes at 1.55 grams per tonne gold for 178,500 ounces of Ore Reserves to the mine plan from the Attila and Alaric deposits on the Golden Highway.

The Gruyere JV anticipates its first gold production to come in the June quarter this year, from which it is planning a six to seven‐month ramp‐up to full production.

The forecast life of mine production now averages approximately 300,000 ounces per annum, a substantial increase from an average of 270,000 ounces per annum determined by the FS.

This new forecast is driven by the purchase of larger SAG and Ball Mills, enabling the JV to increase processing throughput to 8.2 million tonnes per annum in fresh rock from 2021, along with slight improvements to expected metallurgical recoveries and the addition of the two Golden Highway deposits.

“With first gold remaining on target for the June 2019 quarter, we have the confidence in Gruyere to be able to provide this update to the life of mine plan for this world‐class project,” Gold Fields executive vice president Australasia Stuart Mathews said.

“The updated mine plan indicates an increase in annual average gold production to 300,000 ounces per annum.

“This update also provides more clarity around Gruyere’s AISC and gold production forecasts.”

Things are definitely taking shape on site with the first ore being mined on schedule in January 2019, a generous amount of which is being stockpiled in order to de-risk the project start-up.

Construction of the Gruyere process plant and infrastructure is progressing at a cracking rate with overall construction at 91.2 per cent as at 18 January 2019.

“It has been an incredible journey for Gold Road, since discovering Gruyere in 2013,” Gold Road managing director and CEO Duncan Gibbs said.

“For Gold Road the updated mine plan means an attributable forecast share of approximately 150,000 ounces of gold on average per annum over the 12-year mine life.

“The cash flow Gruyere will produce from 2019 will be substantial and allow us to deliver tremendous value for shareholders, many of whom have backed us since before we made the discovery.

“Gold Road will continue to work closely with Gold Fields, to safely and successfully conclude construction and commissioning of this world‐class gold operation.”

Exploration remains a strong focus of Gold Road Resources and the company is keen to maintain its reputation as an explorer for, and discoverer of, rich gold deposits.

Gold Road’s Yamarna exploration tenements cover 180 kilometres of greenstone strike, making it one of Australia’s largest greenfields gold exploration projects.

The 100 per cent-owned Northern Project Area that encapsulates the Ibanez (Corkwood) and Bloodwood targets has also demonstrated plenty of potential.

Most recent news has emanated from the 100 per cent-owned Southern Project Area, in particular at the Gilmour Prospect, which is shaping up to be a very interesting discovery in its own right.

The Gilmour prospect has previously exhibited excellent continuity of mineralisation characterised by a consistent and predictable gold-¬bearing quartz vein in most intersections.

Gold Road has focused its efforts at Gilmour on understanding both the geological controls to mineralisation, and the potential economic value of the discovery, from which it has already rapidly advanced the project recording detailed drilling results capable of supporting potential future resource modelling activities.

Gold Road recently completed a round of infill and extensional drilling at the Gilmour deposit that demonstrated exceptional internal consistency and extension to the known high‐grade gold mineralisation.

The most recent intersections from Gilmour include:

0.62 metres at 117.78 grams per tonne gold from 340.55m;

1.78m at 29.68g/t gold from 290m, including 0.96m at 54.59g/t gold from 290.82m;

19m at 2.78g/t gold from 63m, including 6m at 7.08g/t gold from 76m;

8m at 6.18g/t gold from 143m, including 2m at 22.27g/t gold from 147m;

3m at 13.99g/t gold from 124m, including 1m at 40.01g/t gold from 124m; and

3m at 13.84g/t gold from 180m, including 1m at 38.23g/t gold from 180m.

Gold Road remains confident these contiguous high‐grade results provide considerable scope for strike and down‐dip extensions to the known mineralisation at Gilmour.

The drilling program, comprising 11 diamond holes for 3,521m and 22 Reverse Circulation (RC) holes for 3,941m, was designed to infill previously reported high‐grade results.

The RC drilling was completed to an average 50m by 50m spacing to a vertical depth of 150m with the diamond drilling spaced at an average 100m centres from 150m to 300m below surface.

Drilling undertaken on the Gilmour Main Shear defined gold mineralisation over a 500m strike length and a dip extent of 300m.

A further diamond drilling program designed specifically to test the Waters Fault at the north end of the Gilmour deposit, returned high‐grade intersections associated with visible gold in quartz veining observed within the fault zone.

Gold Road interpreted these results to demonstrate additional exploration potential exists in parallel mineralised structures.

“This last round of infill and extensional drilling proved very successful in confirming the high‐grade nature of the mineralisation at Gilmour, with abundant free gold consistently intersected in both diamond and RC drilling,” Gold Road Executive Director ‐ Exploration & Growth Justin Osborne said.

“More importantly, the drilling demonstrated a highly predictable geometry to the main shear zone as well as indications of possible parallel structures which only adds to the upside of this exciting new discovery.

“Our 2019 drilling programs will kick off in February with diamond and RC drilling targeting further extensions to the currently defined Gilmour footprint prior to commencing detailed drilling for resource assessment.”


Gold Road Resources (ASX: GOR)
…The Short Story

Level 2
26 Colin Street
West Perth WA 6005

Ph: +61 8 9200 1600


Tim Netscher, Duncan Gibbs, Justin Osborne, Sharon Warburton, Brian Levet


Gold Road Resources Outlines Gruyere Production Guidance

THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) provided the market with an update on 2019 production guidance for the Gruyere gold project Joint Venture with Gruyere Mining Company, a member of the Gold Fields Limited group.

Gold road Resources intimated that with first gold on target for the June 2019 quarter, the Gruyere Project is anticipated to achieve commercial production during the second half of this calendar year.

Ramp‐up to full nameplate capacity is expected to be completed within six to seven months of first gold.

Gold production for year 2019 is estimated between 100,000 and 120,000 ounces with Gold Road’s share of guided production estimated to be 50,000 to 60,000 ounces.

Once commercial production is declared, all‐in sustaining costs for the remainder of 2019 are expected to be between $1,050 and $1,150, which the company said was slightly higher than the forecast life‐of‐ mine average of $1,025 per ounce, as production ramps up to full nameplate capacity.

Prior to commercial production being declared, production costs (net of revenue from any gold sold) will be capitalised.

The final forecast capital (FFC) cost estimate remains at $621 million and Gold Road anticipates funding a total share of the FFC cost of $284 million.

As of 31 December 2018, Gold Road’s remaining share of capital development costs is approximately $40 million.

Gold Road’s remaining share of JV management costs is approximately $10 million.

As at 14 February 2019 the Gruyere JV had mined 185,000 tonnes of ore, from which a substantial stockpile of ore is being amassed in preparation for initial production to facilitate a smooth ramp up during 2019.

“It is good to see the Gruyere project develop from conceptual plans through Feasibility Study to a well‐designed large scale, long‐life, low‐cost operation that is on the threshold of delivering substantial value for our shareholders,” Gold Road Resources chairman Tim Netscher said in the company’s announcement to the Australian Securities Exchange.

“We look forward to pouring first gold in the June 2019 quarter.”