Production Down for Quarter at Gold Road Resources’ Gruyere

Gold Road Resources Ltd. reported that due to disruptions to processing plant operations at the Gruyere Gold mine, production at Gruyere for the second quarter of 2021 will be approximately 52,000 ounces (oz) to 55,000 oz (100% basis). As a consequence of the lower than expected gold production, and additional plant maintenance, all-in sustaining costs (AISC) per ounce for the June quarter are anticipated to be in a range of A$1,675/ oz ($1,235/oz) to A$1,800/oz (($1,327/ oz),, subject to final end of quarter accounts.

The disruptions to Gruyere’s processing plant operations included a torn mill feed conveyor belt, which resulted in temporary repairs and reduced processing rates while specialist personnel and materials for the belt replacement were obtained. Following the shutdown of the milling circuit to replace the conveyor belt, a coupling on the ball mill failed. As a result, processing continued at a reduced rate, with only the SAG mill in operation.

Repairs to the ball mill were completed on June 25, with the processing plant returning to normal operations over the weekend. The root cause of the coupling failure is under engineering investigation, with the objective of preventing potential future failures.

At this stage, Gold Road anticipates gold production for the 2021 calendar year will be within the lower half of guidance (260,000 to 300,000 oz on a 100% basis). AISC for the 2021 calendar year are anticipated to be between $1,325 and $1,475 per attributable ounce, with lower June quarter production and higher maintenance and labor costs the main contributors to an increase from guidance of between A$1,225-A$1,350.

As featured in Womp 2021 Vol 08 -