Perth-based Gold Road Resources has doubled its exploration budget for the year with plans to spend about $22 million exploring its tenements, following the receipt of funds through its recently formed joint venture with South African mining giant Gold Fields.
In a statement today, Gold Road said it would allocate up to $15 million exploring its wholly owned North Yamarna tenements, a further $5 million on tenements held in a 50:50 joint venture with Gold Fields, and up to $2 million on tenements held in an equal joint venture with Sumitomo Metal Mining Oceania.
The company estimated about $30 million would be spent across the greenfields exploration program when including contributions of an equal amount by its joint venture partners.
“The funding we have available following completion of the Gruyere JV transaction allows us to accelerate our geological evaluation of the Yamarna Belt,” Gold Road executive director exploration and growth Justin Osborne said.
“In 2017, we plan to test multiple targets identified over the last three years across the North Yamarna tenements and are anticipating an aggressive drilling program for the Gruyere JV, which will be targeting expansion of the resource base for the project. This will include a deep diamond drilling program targeting the potential underground extension to the current open-pit mineral resource.
“This will represent an effective doubling of the 2016 exploration budget.”
Gold Fields paid $350 million to acquire a 50 per cent stake in Gold Road’s Gruyere project in December, a month after a feasibility study detailed a $507 million capex to bring the project into production.
Gold Road shares closed 3.3 per cent higher to 61.5 cents each today.
