Gold Road Resources has appointed GR Engineering Services to undertake a lead engineering role in a feasibility study for its Gruyere gold project near Laverton.
The announcement that GR Engineering will be lead manager for the feasibility study follows news earlier this week that a pre-feasibility study on Gruyere, also managed by GR Engineering, predicted a $455 million cost to bring the project into production.
“The feasibility study will be the detailed investigation into the development of a 7.5 million tonnes per annum SAG/Ball mill circuit, Carbon in Leach processing plant and associated infrastructure enabling Gold Road to undertake final investment decisions and potentially advance the Gruyere project to implementation,” GR Engineering said in a statement.
Managing director Geoff Jones said the company looked forward to continuing its strong relationship with Gold Road on the study.
“We believe (Gruyere) will be a significant gold development opportunity in Australia,” he said.
The pre-feasibility study, which was led by AMC Consultants, estimated Gruyere to have a maiden ore reserve of 3.17 million ounces of gold to support an annual production of 265,000oz over an initial 12-year mine life.
The study also estimated an average all-in sustaining cost of $960/oz over the life of mine, with a payback period of less than four years.
GR Engineering shares were 2.5 per cent higher to 82 cents each, while Gold Road shares rose 5.9 per cent to 44.5 cents each at 10:40am.