29/09/2016 - 13:15

Gold Road to spend $18m on early work at Gruyere

29/09/2016 - 13:15

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Gold Road Resources has been given the green light to build an accommodation village and an access road at its Gruyere gold project, which it says will cost about $18 million.

Gold Road Resources has been given the green light to build an accommodation village and an access road at its Gruyere gold project, which it says will cost about $18 million.

Perth-based Gold Road said it had been granted a licence from the state government to undertake limited early works at the gold project, located east of Laverton.

Gold Road has tracked down two possible second-hand, 600-person accommodation villages, and is also exploring the option of buying new facilities.

The company has also been given approval to construct an access road from the accommodation village to the main site, with the total cost of the two areas of work expected to be $18 million.

It will be funded with the proceeds of Gold Road’s $74 million raising, which was completed earlier this year.

“Securing these key miscellaneous licences is another important step in bringing Gruyere closer to development as it ensures tenure for the project infrastructure and allows us to start the preparatory stage of construction in a timely manner,” managing director Ian Murray said.

“We continue to progress discussions regarding comprehensive funding and corporate options for the project and remain confident of settling on a solution towards the end of 2016, when the Gruyere feasibility study is due for completion.”

Gold Road shares were 1.5 per cent higher to 64 cents each at 1pm.

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