06/12/2018 - 14:39

Gruyere forecasts production lift to 300,000oz

06/12/2018 - 14:39

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Gold Road Resources has increased the forecast annual output for its half-owned $621 million Gruyere gold project, while confirming first production remains on track for mid-2019.

The company says the project is about 85 per cent complete.

Gold Road Resources has increased the forecast annual output for its half-owned $621 million Gruyere gold project, while confirming first production remains on track for mid-2019.

Gold Road, which has a 50-50 joint venture with Gold Fields at Gruyere, said an update mining plan for the project had lifted annual production from 270,000 ounces to 300,000oz.

The new plan also estimates an average all-in sustaining cost of $1,025 per ounce, slightly above the 2016 forecast.

Mill processing throughput has increased from 7.5 million tonnes per annum to 8.2 mtpa.

“For Gold Road the updated mine plan means an attributable forecast share  of approximately 150,000 ounces of gold on average per annum over the 12-year mine life,” Gold Road managing director Duncan Gibbs said.  

“The cash flow Gruyere will produce from 2019 will be substantial and allow us to deliver tremendous value for shareholders, many of whom have backed us since before we made the discovery.  

“Gold Road continues to work closely with Gold Fields, to safely and successfully conclude construction and commissioning of this world‐class gold operation.” 

The company said the project was 85 per cent complete, with all major equipment now on-site.

Earlier this year the JV flagged a cost increase at the project and schedule delays due to heavy rainfall.

Shares in Gold Road were flat at 61 cents each today.

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