Gruyere Gold Production Could Increase

Gold Road Resources and Gruyere Mining Co., a member of the Gold Fields group, have released an updated mine plan for their 50:50 joint-venture Gruyere gold project, which is nearing completion 200 km east of Laverton, Western Australia. The life-of-mine plan now calls for gold production of about 300,000 ounces per year (oz/y) over a 12-year mine life, up from 270,000-oz/y forecast in the 2016 feasibility study. Mill processing throughput has increased from 7.5 million metric tons per year (mt/y) to 8.2 million mt/y.

The production increase was driven by purchase of larger SAG and ball mills, lifting processing throughput to 8.2 million mt/y in fresh rock beginning in 2021; slight improvements to expected metallurgical recoveries; and the addition of two deposits to the mine plan. The updated plan now calls for mining of 96.6 million mt at an average head grade of 1.21 g/mt gold. All-in sustaining costs are forecast at A$1,600/oz.

First gold production from the Gruyere project remains on target for the June quarter of 2019. As of November 2018, all major equipment and materials were on site and overall project and EPC construction (process plant and associated infrastructure) were 85% and 77% complete, respectively.

“It has been an incredible journey for Gold Road since discovering Gruyere in 2013,” said Gold Road Managing Director and CEO Duncan Gibbs “The cash flow Gruyere will produce from 2019 will be substantial.”

As featured in Womp 2019 Vol 01 -