Gold Road and Gold Fields Form JV to Develop Gruyere Gold Project
Gold Road completed a feasibility study of the Gruyere project in mid-October. The study considers development of an open-pit mine producing an average of 270,000 ounces per year (oz/y) of gold over a 13-year mine life. Capital cost to develop the project is estimated at A$507 million, with an additional A$77 million in sustaining capital required over the life of the mine. All-in life-of-mine sustaining costs of production are estimated at A$945/oz.
Proven and probable reserves at the Gruyere project total 91.6 million metric tons (mt) at a grade of 1.2 g/mt of gold, containing 3.52 million oz of gold. The Gold Road owner’s team is being retained as part of the team to develop the Gruyere gold project under the management of Gold Fields. Gold Road will continue to manage the project during a transition period of up to six months following completion of the transaction, after which Gold Fields will become the manager.
“Australia is a key part of our business and our largest cash generator, and this deal enhances our portfolio and expands our exposure to a new and emerging goldfield in Western Australia,” said Gold Fields CEO Nick Holland. “We are excited about partnering with Gold Road and are hopeful this is the start of a multidecade, mutually beneficial relationship. We see significant potential synergies in resourcing, intellectual property, procurement, and technical skills.”