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THE DAILY ROADHOUSE

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:

LGAC0058
3 metres at 0.35 grams per tonne gold from 52m; and

LGAC0091
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.

 

Email: info@cygnusgold.com

Web: www.cygnusgold.com

 

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:

19WDDD0046
2.06 metres at 12.4 grams per tonne gold from 357.2m;

19WDRC0239
4m at 4.96g/t gold from 199m;

19WDRC00240
7m at 2.2g/t gold from 146m; and

19WDDD0038A
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.”

 

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

 

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.

 

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

 

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:

18WDDD0031
0.62 metres at 117.78 grams per tonne gold from 340.55m;

18WDDD0026
1.78m at 29.68g/t gold from 290m, including 0.96m at 54.59g/t gold from 290.82m;

18WDRC0193
19m at 2.78g/t gold from 63m, including 6m at 7.08g/t gold from 76m;

18WDRC0210
8m at 6.18g/t gold from 143m, including 2m at 22.27g/t gold from 147m;

18WDRC0199
3m at 13.99g/t gold from 124m, including 1m at 40.01g/t gold from 124m; and

18WDRC0192
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

HEAD OFFICE
Level 2
26 Colin Street
West Perth WA 6005

Ph: +61 8 9200 1600

Email: perth@goldroad.com.au
Website: www.goldroad.com.au

DIRECTORS
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.”

 

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

 

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.”

 

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

 

Gold Road Resources Encounters High-Grades at Gilmour Deposit

THE DRILL SERGEANT: Gold Road Resources released results from framework exploration drilling being undertaken at the company’s 100 per cent-owned Southern projects within the Yamarna Belt, 200 kilometres east of Laverton in Western Australia.

Gold Road Resources said recent drilling results had confirmed continuity of high¬-grade gold mineralisation at the Gilmour deposit, returning intersects of:

18WDRC0183
4 metres at 19.61 grams per tonne gold from 111m, including 1m at 74.98g/t gold from 113m;

18WDDD0024
8.14m at 7.11g/t gold from 261m, including 1.23m at 31.98g/t gold from 267.91m;

18WDRC0178
3m at 12.77g/t gold from 170m, including 2m at 18.98g/t gold from 170m; and

18WDRC0179
5m at 5.12g/t gold from 219m, including 1m at 24.06g/t gold from 221m.

Gold Road explained that Resource definition drilling is underway over a 500-metre strike length and that mineralisation intersected to date, over 250 metres below surface is open at depth.

Work to date has demonstrated the main mineralised shear zone is approximately three to five metres wide and is characterised by coarse visible gold within a highly continuous laminated quartz vein, with moderate alteration and lesser subsidiary gold¬-bearing veins.

Gold Road has completed a conceptual economic assessment based on a preliminary geological model derived from the current broad drilling information.

The company has been encouraged by the results, which it said justified ongoing follow-¬up extensional diamond and infill Reverse Circulation (RC) drilling programs that it anticipates completing during the December 2018 quarter.

“The Gilmour deposit is shaping up to be a very interesting discovery on our 100 per cent-owned ground, exhibiting excellent continuity of mineralisation characterised by a consistent and predictable gold¬-bearing quartz vein in most intersections,” Gold Road Resources executive director¬ exploration & growth Justin Osborne said in the company’s announcement to the Australian Securities Exchange.

“A diligent focus on understanding both the geological controls to mineralisation, and the potential economic value of the discovery has allowed the team to rapidly advance the project to detailed drilling capable of supporting potential future resource modelling activities.

“The widths, grades, and extent of mineralisation identified to date provide the encouragement to progress Gilmour as one of the priority projects going into 2019.”

 

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

 

Exploration Key to Gold Road Resources’ Future

THE INSIDE STORY: Development of the Gruyere gold project is on schedule to promote Gold Road Resources (ASX: GOR) to be an Australian gold producer.

As exciting that is, the company is determined to maintain its reputation as an explorer for, and discoverer of, rich gold deposits.

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

To put that in perspective, the tenements cover the same distance that separates the Western Australian goldfields hubs of Kalgoorlie and Norseman.

To focus the $23 million of exploration drilling Gold Road is conducting this year, it has separated its tenements into three delineated hubs.

The 100 per cent-owned Northern Hub encapsulates the Ibanez (Corkwood) and Bloodwood targets.

The Southern Hub, also 100 per cent Gold Road-owned, includes the Smokebush, Toppin Hill, and Wanderrie targets.

“Each of these hubs is a geological target area with multiple targets within each one,” Gold Road Resources’ Executive Director – Exploration & Growth Justin Osborne told The Resources Roadhouse.

“They are close enough to each other that should we start finding deposits within a camp that may be close enough to a deposit in another we could possibly develop another mining/processing centre, into which we can feed material from multiple camps.

“We want to be a producing exploration company: we want to be a decent sized producer at 150,000 ounces per year, but we also still want to be an aggressive exploration company.”

The company’s 50 per cent interest in the Central Hub includes the Gruyere gold project, where construction is being managed by Gruyere Management Pty Ltd, a wholly-owned subsidiary of the company’s 50 per cent Joint Venture partner Gold Fields Limited.

Currently all Yamarna Mineral Resources and Ore Reserves are located within the Gruyere JV tenements.

The Ore Reserve for Yamarna was recently increased by 6.3 per cent to 97.35 million tonnes at 1.2 g/t gold for 3.74 million ounces of gold.

This included a maiden combined Ore Reserve of 3.59 million tonnes at 1.55 g/t gold for 179,000 ounces for satellite deposits at Attila and Alaric after a Pre‐feasibility Study into developing each as open pit mines to provide satellite feed to the Gruyere process plant was completed.

Modifications to the mine design operational plan increased Ore Reserves at Gruyere by 44,000 ounces following to 93.76 million tonnes at 1.18 g/t gold for 3.56 million ounces.

Six million dollars (100 per cent basis) of Gold Road’s 2018 budget will fund drilling at the Gruyere JV focusing on resource definition drilling on additional high‐margin satellite deposits.

Early this year, RC drilling to convert the existing Attila‐Alaric Trend 12.32 million tonnes at 1.5 g/t gold for 596,000 ounces Mineral Resource to Ore Reserve commenced on the Montagne Deposit, which along with the Argos deposit contributes 207,000 ounces to the above figure.

“Exploration activity we have planned for the Central Hub, within the Gruyere JV, is focused along the Golden Highway – the Attila-Alaric Trend,” Osborne explained.

“Most of that will be infill drilling, and hopefully identify some new higher-grade zones in some of the Central Hub deposits, such as Montagne and Argos.

“If we can start proving those up on closer spacing, we might establish some pockets of high-grade Reserves that can be trucked across to Gruyere.”

In February 2018 Gold Road achieved 100 per cent-ownership of the Southern Hub tenements by acquiring the 50 per cent interest of its JV partner since 2013, Sumitomo Metal Mining Oceania Pty Ltd (SMMO).

Subsequent drilling confirmed high-grade mineralisation at the Smokebush Camp and along the 14-kilometre-long Supergroup Trend in the Wanderrie Camp, starting approximately 15 kilometres north of the Smokebush Camp.

Diamond drilling at Smokebush improved understanding and continuity of high-grade dolerite hosted mineralisation, returning intersections of:

18SMDD0005
56.25 metres at 1.95g/t gold from 98.75m, including 5.41m at 4.22g/t gold from 133.65m and 7.73m at 5.45g/t gold from 144m;

15SYDD0008
6.76m at 31.13g/t gold from 167.71m, including 0.94m at 191.36g/t gold from 173.06m; and

15SYRC00034
71m at 2.95g/t gold from 123m, including 6m at 5.34g/t gold from 143m

Diamond and RC drilling results from Wanderrie also confirmed potential to define several deposits, including:

18WDRC0149
2m at 17.45g/t gold from 80m;

18WDRC0157
1m at 17.27g/t gold from 134m and 5m at 4.5g/t gold from 140m;

18WDRC0156
5m at 3.63g/t gold from 85m and 2m at 10.31g/t gold from 130m; and

18WDRC0159
5m at 3.64g/t gold from 57m.

18WDDD0021
10.53m at 4.19g/t gold from 165m

“At both of those targets we intersected high-grade mineralisation,” Osborne said.

“We believe both have potential to progress to where we would like them to be by the end of the year, which would be ready to commence Resource drilling.”

Another Southern Hub target is Toppin Hill where previous drilling encountered 12m at 4.7g/t gold and 9.1m at 3.5g/t gold.

Toppin Hill was part of the South Yamarna JV with SMMO where the company had limited opportunities to conduct follow-up drilling after the original discoveries.

Aircore drilling on the Wanderrie Supergroup Trend confirmed 11 kilometres of strike, returning mineralised intersections of:

Satriani
17WDRC0033
2m at 14.74g/t gold from 73m;

Santana
17TARC0028
1m at 17.73g/t gold from 68 metres; and

17TARC0025
5 metres at 2.03 g/t gold from 108m.

The Northern Hub has demonstrated plenty of potential and Gold Road is eager to complete current diamond and RC testing at one of its highest‐ranked targets, Ibanez, within the Corkwood Camp.

Previous results from Ibanez include:

17CWRC0037
10m at 28.67g/t gold from 240m, including 2m at 136.57g/t gold from 240m; and

17CWDD0015
8.20m at 11.63g/t gold from 229.67m, including 3.33m at 27.48g/t gold from 232.26m.

Unseasonable heavy rainfall stymied Gold Road’s plans to gain access to Ibanez and the broader Corkwood area in February, however all necessary clearances have since been approved and the access track repaired allowing drilling of Ibanez to recommence.

The company’s true exploration roots will be on show when it gets to the Romano and Bloodwood targets in the Northern Hub.

Bloodwood and Romano will be the first ‘untested’ camps that Gold Road will have drilled for more than three years.

“Romano sits north of Gruyere along the same Dorothy Hills Shear and is a target we have been trying to get to for two or three years,” Osborne enthused.

“At Bloodwood we will be drilling out an approximate 15-kilometre strike length that is completely untested between Corkwood and Attila-Alaric.

“The magnetics we have seen from Bloodwood indicate there are some interesting target zones that don’t look any different to the target zones we originally encountered along the Attila-Alaric Trend.

“There is now 600,000 ounces of Resources at Attila-Alaric so if we are able to repeat that at Bloodwood and establish substantial Resources at Romano and Corkwood, that would then become the backbone of a new processing centre.

“The same goes for the Southern Hub.

“If we were to find half a million ounces at each of Smokebush, Wanderrie and Toppin Hill – that’s 1.5 million ounces in a centre that would be enough to justify a separate project development.

“Don’t get me wrong, it would be fantastic to find a one-million-ounce deposit in its own right, but if we were to establish three half-million-ounce centres, then that’s fine too.”

Anticipation is high amongst the Western Australia gold community for the opening of the Gruyere gold project.

As Australia’s next tier one gold mine, the Gruyere gold project is an important new project for WA that is expected to produce an average of 270,000 ounces per annum over the 13-year life-of-mine and low all in sustaining costs.

To give those figures some perspective it is worth noting that Australia is the second largest producer of gold in the world with 288 tonnes of gold produced in 2016-17.

There are currently 66 operating gold mines in Australia including 14 of the world’s largest, 11 of which are in Western Australia making it the country’s major gold producer, accounting for almost 70 per cent of Australia’s total gold production.

This means that if it was a country – which many Sandgropers would prefer – Western Australia would ranks as the fifth largest gold producer in the world.

The Gruyere Gold Project was discovered by Gold Road in October 2013 on the South Dorothy Hills Trend.

Just 10 months after making the Gruyere discovery, Gold Road had defined a substantial high-grade gold deposit which has since grown to 144 million tonnes grading 1.3 grams per tonne for 5.9 million ounces of contained gold, making it one of the largest undeveloped gold deposits in Australia.

The project attracted the attention of Gold Fields Ltd, which entered a 50:50 Joint Venture with the ambitious explorer.

Construction of the 7.5 million tonnes per annum Gruyere gold project commenced at the beginning of 2017 and since then the Project team has managed to tick off several important milestones, the biggest of which is to come in the shape of the first gold pour, scheduled for the beginning of the 2019 June quarter.

The delivery from discovery to first gold of 5.5 years will represent a great achievement by Gold Road and Gold Fields.

The Project milestones achieved over the past 18 months include:

Installation and establishment of the 648 room Gruyere Village by McNally Construction which was opened by the Hon. Bill Johnston, WA Minister for Mines in August 2017;

Construction of the Anne Beadell borefield, the main water supply for the Gruyere Village and early earthworks by GR Engineering Services and Desert Sands;

Completion by MACA of the all-weather 100 seater jet capable Gruyere airstrip, Gruyere main access road, clearing and part pre-stripping of the Stage 1 Pit and the life-of-mine Tailings Storage Facility, and commencement of the Yeo borefield which will provide water for mine operations;

Over 50 per cent completion progress by the Amec Foster Wheeler Civmec Joint Venture (ACJV) on construction of the Gruyere Process Plant and other infrastructure;

Completion of the 198 kilometre Yamarna Gas Pipeline (YGP), which was installed by Nacap Australia Pty Ltd on behalf of APA Group slightly ahead of schedule. All generators and gas engines have been installed at the 45MW Gruyere Power Station. Integrity testing is in progress ahead of anticipated commissioning of the power station in the December 2018 quarter; and

Delivery of all significant plant and equipment including SAG, Ball Mills and crushing circuit to site with installation underway.

The construction is fully funded by the Gruyere Joint Venture.

Construction of mining infrastructure commenced in the March 2018 quarter and mining activities are scheduled to begin in the December 2018 quarter.

At the peak of the mining services contract, Downer expects to deploy 170 personnel at Gruyere charged with moving approximately 31 million tonnes of material per year.

The Gruyere gold project will employ a total of 350 personnel once in operation.

 

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

HEAD OFFICE
Level 2
26 Colin Street
West Perth WA 6005

Ph: +61 8 9200 1600

Email: perth@goldroad.com.au
Website: www.goldroad.com.au

DIRECTORS
Tim Netscher, Ian Murray, Justin Osborne, Sharon Warburton, Brian Levet

 

 

Gold Road Greenfield Drilling Focused on Discovery

INSIDE UPDATE: Leading into 2018, Gold Road Resources (ASX: GOR) concentrated on identifying targets for a prioritised greenfields exploration program.

As result, Gold Road will spend approximately $23 million drilling to test the highest‐ranked prospects across its 100 per cent owned Yamarna tenements and the Gruyere Project Joint Venture (Gruyere JV) with Gold Fields Limited.

Gold Road’s ‘Exploration Pipeline Model’ ranks the quality of identified targets within progressive milestone stages ‐ Milestone 1 being the earliest stage and Milestone 5 being the most advanced.

Recent drilling focused primarily on Milestone 3 targets including:

Diamond and RC drilling on the Wanderrie Supergroup Trend; and

Diamond and RC drilling at the Smokebush Camp.

Gold Road anticipates undertaking further diamond and RC testing of one of the highest‐ranked Milestone 3 targets, Ibanez, within the Corkwood Camp.

Two aircore rigs began drilling at Yamarna towards the end of March testing earlier stage (Milestone 1 and 2) targets.

Projects earmarked for aircore drilling in coming months include:

Tamerlane, a Milestone 2 target where drilling has commenced on the Yamarna Shear trend north of the Wanderrie Camp;

Kingston North within the Spearwood Camp that had drilling scheduled for mid‐April to infill and extend a gold geochemical anomaly identified at the end of 2017;

Smokebush Regional is a high-ranked Milestone 1 target, within the Smokebush Camp that has drilling scheduled for May to test the broader region north of the highly ranked Smokebush prospect;

The highest ranked Milestone 1 target is Bloodwood Camp where first pass drilling is scheduled for late May; and

The Milestone 1 Romano Camp target north of Gruyere is to undergo first pass drilling expected to commence mid‐year.

In February, Gold Road signed a Sale Agreement to acquire Sumitomo Metal Mining Oceania Pty Ltd’s 50 per cent interest in the South Yamarna project for $7 million in cash.

The transaction is expected to be concluded in May and will return Gold Road to 100 per cent ownership of the South Yamarna tenement package, which contains some of the highest ranked Camp Scale and bedrock drilling targets identified by Gold Road in the district.

Most of Gold Road’s 2018 exploration budget ($17 million) will be spent on the Yamarna tenements, where four drill rigs have commenced on a campaign designed to maximise the chances of discovering additional multi‐million-ounce gold deposits capable of supporting development of stand‐alone mining operations.

Construction of the Gruyere gold project is progressing, with project engineering and overall construction 84 per cent and 44 per cent complete respectively, and EPC construction 17 per cent complete at the end of March.

A review of the project cost estimate and schedule, the Definitive Estimate, indicated that recent above average rainfall is likely to hold up first gold being poured at the project and increase capital costs.

First gold production at Gruyere is now anticipated early in the June 2019 quarter.

The $6 million Gruyere JV exploration drilling program will focus on resource definition drilling on additional high‐margin satellite deposit to supplement the Gruyere mine schedule.

Gold Road updated the Yamarna Mineral Resource and Ore Reserve statement.

The Ore Reserve for Yamarna increased by 6.3 per cent to 97.35 million tonnes at 1.2 grams per tonne gold for 3.74 million ounces of gold.

This is associated largely with maiden reserve declarations for satellite deposits at Attila and Alaric, combined with a minor increase at Gruyere.

Following a Pre‐feasibility Study into developing Attila and Alaric as open pit mines to provide satellite feed to the Gruyere process plant, a combined Ore Reserve of 3.59 million tonnes at 1.55g/t gold for 179,000 ounces of gold was established for these deposits.

The Ore Reserve at Gruyere increased by 44,000 ounces of gold following modifications to the mine design submitted for the operational plan and now stands at 93.76 million tonnes at 1.18g/t gold for 3.56 million ounces of gold.

Gold Road added a third joint venture agreement in Western Australia’s South‐west Terrane with Cygnus Gold (ASX: CY5), comprising four tenement applications within the Yandina Shear, which is known to host gold mineralisation elsewhere in the South‐west Terrane.

The joint venture terms commence on a 75 per cent Gold Road and 25 per cent Cygnus ownership basis.

 

 

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

HEAD OFFICE
Level 2
26 Colin Street
West Perth WA 6005

Ph: +61 8 9200 1600

Email: perth@goldroad.com.au
Website: www.goldroad.com.au

DIRECTORS
Tim Netscher, Ian Murray, Justin Osborne, Sharon Warburton, Brian Levet