- Gold Road Resources (GOR) has increased its measured and indicated gold resource at the Gruyere mine by 1.23 million ounces
- This upgrade came from a drilling program conducted last year with its joint venture partner, the Gruyere Mining Company
- The Gruyere joint venture will now evaluate open pit ore reserves to grow the Gruyere mine life
- The company has a busy 2020 ahead with exploration costs slated at $26 million
- Gold Road is up a slight 0.47 per cent with shares trading for $1.60 each
Gold Road Resources (GOR) has announced a measured and indicated resource increase of 1.23 million ounces for the Gruyere joint venture project.
Gold Road and its 50:50 joint venture partner, Gruyere Mining Company, conducted an 11,300 metre diamond and reverse circulation drilling program last year.
The program was designed to extend the indicated resource below the 2018 Ore Reserve pit design of the Gruyere Deposit.
The measured and indicated resources have increased by 1.23 million ounces, representing 29 per cent, to 133 million tonnes at 1.30 grams per tonne of gold for 5.6 million ounces.
Total measured and indicated resources within the Gruyere joint venture (including Golden Highway) have now increased to 144 million tonnes at 1.32 grams per tonne of gold for 6.1 million ounces.
“The increase in M&I resources by 1.2 million ounces is meaningful and very encouraging,” Managing Director and CEO Duncan Gibbs said.
The company also reported on its mineral resource, which comprises the Gruyere and Golden Highway deposits, as well as YAM14 and Central Bore underground.
As of December 2019, the Gold Road attributable Mineral Resource is 80.41 million tonnes at 1.40 grams per tonne of gold for 3.61 million ounces. This is an increase of 0.3 million ounces, or nine per cent, from December 2018.
“The Gruyere JV focus will now move to reviewing Reserves with the goal of growing mine life whilst maintaining a low AISC. 2020 production and cost guidance affirms Gruyere’s position as a Tier 1 operation with significant cash generation,” Duncan added.
During 2020, the joint venture partners will conduct geotechnical analysis, review costs and plant performance with a specific focus on fresh rock ore.
The company expects the next Ore Reserve update will be early next year.
Gruyere 2020 Guidance
The Gruyere gold production forecast for this year is between 250,000 and 285,000 ounces and all-in sustaining costs are guided between A$1,100 and $1,200 per ounce.
The ramp-up to full production at the mine will continue with a number of plant shutdowns scheduled for this current quarter. This will allow the operations team to improve plant availability, operating efficiencies and conduct maintenance programs.
In terms of fresh rock ore, the proportion of fresh ore mined is expected to steadily increase to fresh rock ore late in the June quarter.
Further mining is scheduled to begin in the middle of the year to continue ore mining from the stage 1 open pit, while continuing to cut-back on the stage 2 open pit.
Additionally, Gold Road identified a number of prospective new targets in the Southern Project area which have been prioritised for testing.
Therefore, the 2020 exploration budget has increased by $3 million to $26 million in support of aircore and diamond drilling.
Gold Road is up a slight 0.47 per cent with shares trading for $1.60 each at 12:02 pm AEDT.