Gold Road Resources expects production at its Gruyere joint venture in WA to rise by as much as 16 per cent this year while projecting a positive three-year outlook for the business.
Gold Road Resources expects production at its Gruyere joint venture in Western Australia to rise by as much as 16 per cent this year while projecting a positive three-year outlook for the business.
Gold Road told the market Gruyere could produce between 260,000 ounces and 300,000oz in the calendar year, up from 258,173oz in 2020, at an all-in sustaining cost (AISC) of between $1,225 and $1,350 per ounce compared with $1,273/oz.
Gruyere is a 50:50 joint venture between Gold Road and South Africa's Gold Fields, which has been operational for more than 18 months.
Its commissioning helped Gold Fields to become WA’s largest goldminer, with the business dethroning US-owned Newmont Corporation after producing a total 973,000oz from its four mines in the Goldfields last year.
By comparison, Gold Road produced 115,000oz solely from its share in the Gruyere mine, making it WA’s sixteenth-largest goldminer, according to Business News Data & Insights.
Today, Gold Road projected its annual production would reach about 350,000oz within the next few years while also budgeting $27 million on exploration efforts outside of Gruyere, including at its Yamarna and Yandina projects in WA.
Managing director Duncan Gibbs said the business aspired to be a long-life, low-cost, and sustainable mid-tier gold producer.
“The 2021 growth strategy aligns with this and focuses on realising shareholder value through optimising and growing Gruyere production at minimal cost, as well as maintaining our strong focus on meaningful organic growth from our 100 per cent-owned Yamarna exploration project,” he said.
The Gruyere JV, which recently declared an open pit mineral resource of 6.7 million ounces at Gruyere and the nearby Golden Highway operations, will update its ore reserves in the second half of the year.
The planned ore reserve will include revised mining and processing information based on actual operating performance, as well as new geotechnical, hydrological, and metallurgical studies.
Shares in Gold Road closed up 1.6 per cent to trade at $1.24.