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- Gold Road Resources (GOR) delivers a June quarterly update on its 50 per cent-owned Gruyere mine in WA
- The mine, held in a joint venture with Gruyere Mining Company, produced a record 85,676 ounces of gold in the June quarter, an increase to the 71,135 ounces in the previous quarter
- Gruyere also achieved its highest quarterly throughput rate of 2.4 million tonnes and the highest average head grade it’s ever achieved
- At the end of the period, Gold Road have a healthy cash balance of $161.3 million and owns almost a 100 per cent interest in fellow stock DGO Gold after a recent takeover offer
- GOR shares are down 1.50 per cent to trade at $1.15 at 1:10 pm AEST
Gold Road Resources (GOR) has announced a production and financial update for the June quarter.
Through a joint venture with Gold Fields’ subsidiary, Gruyere Mining Company, Gold Road owns a 50 per cent interest in the Gruyere gold mine in WA.
Gruyere achieved record production in the June quarter, with 85,676 ounces of gold compared to 71,135 ounces produced in the March quarter.
The mine processed 2.4 million tonnes of ore at a head grade of 1.22 grams per tonne (g/t) gold at a recovery rate of 91.3 per cent. This is reportedly the highest throughput achieved in a quarter and the highest average head grade Gruyere has ever achieved.
In terms of sales, Gold Road sold a record 44,526 ounces at an average price of $2496 per ounce.
By the end of the June quarter, the company had $161.3 million in cash which is an increase to the $138 million it had at the end of the March quarter.
Gold Road Resources noted its cash and equivalents position is after over $11 million of one-off cash payments to fund the DGO Gold (DGO) acquisition.
The company holds a relevant interest of 97.9 per cent in DGO and the takeover offer has moved to a compulsory acquisition of the remaining shares in DGO.
Through the DGO Gold acquisition, Gold Road now holds minority interests in a few ASX-listed companies. These include a 14.4 per cent stake in De Grey Mining (DEG), a 6.8 per cent shareholding in Dacian Gold (DCN) and a 20.1 per cent shareholding in Yandal Resources (YRL).
Gold Road plans to provide further details on its quarterly operations in its June quarterly report which is expected to be released to the market later this month.
GOR shares were down 1.50 per cent to trade at $1.15 at 1:10 pm AEST.
