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Gruyera proves up for Gold Road

8th February 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A prefeasibility study (PFS) into ASX-listed Gold Road Resources’ Gruyere project, in Western Australia, has proven that the project is financially viable.

Based on a maiden ore reserve of 3.17-million tonnes, the PFS estimated that the project could deliver about 265 000 oz of gold over an initial 12-year mine life, with capital investment estimated at A$455-million.

The project development was based on a single large openpit mine and a conventional carbon-in-leach plant with a throughput of between 7.5-million tonnes and 8.8-million tonnes a year.

The PFS estimated that the project would have an all-in sustaining cost of A$960/oz, over the mine life, and could generate more than A$1-billion in undiscounted free cash flow.

“While the PFS suggests a substantial 12-year project life, the demonstrated exploration potential of Gruyere and the surrounding Yamarna region means there is significant potential to extend the life beyond that initial term,” said Gold Road executive chairperson Ian Murray.

“None of that potential upside has been included in the scope of the PFS.”

Murray said that Gold Road was aiming to complete a feasibility study on the Gruyere project by the end of 2016, which would allow the company to make an investment decision by early 2017.

“Opportunities to optimise and enhance the financial performance of the project will be thoroughly assessed during this feasibility stage,” he added.

Edited by Creamer Media Reporter

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