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Gold Road resumes mining at Gruyere

Gruyere gold mine

Gruyere gold mine

19th April 2024

By: Darren Parker

Creamer Media Contributing Editor Online

     

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ASX-listed gold miner Gold Road Resources has announced the resumption of mining and processing operations at the Gruyere gold mine, in Western Australia.

In its March 2024 quarterly report, released on April 19, the company said operations at the mine were now being facilitated by transporting consumables through the Northern Territory and Warburton to the east of Gruyere, while repairs continue on the Great Central road – Gruyere’s main supply route from the west.

Gold Road noted that production at Gruyere, which is a joint venture with Gold Fields, was impacted on by sustained rainfall and extended road closures during March and continuing into April, resulting in production of 64 323 oz of gold at an all-in sustaining cost (AISC) of A$2 194 per attributable ounce during the March quarter.

Despite the challenges posed by the rain, Gold Road maintains its full-year guidance for Gruyere, expecting production to be in the lower half of guidance, ranging between 300 000 oz and 335 000 oz, or 150 000 oz to 167 500 oz attributable, while the upper half of attributable AISC is expected to be between A$1 900/oz and A$2 050/oz.

However, the company cautioned that the impacts of the rain would result in lower than previously expected production in the June quarter.

Gold Road reiterated that mining rates were at desired levels during February and early March, and that production remains guided to continue ramping up throughout the calendar year, with stronger production performance expected in the second half of the year.

Additionally, the company said it had started drilling to explore further mining opportunities beneath the Gruyere ore reserve.

In terms of financial and corporate performance, Gold Road reported that gold sales totalled 32 325 oz at an average sales price of A$3 137/oz. The company had 1 825 oz of gold doré and bullion on hand as at March 31.

Gold Road's attributable operating cash flow from Gruyere for the quarter amounted to $57.9-million, with free cash flow standing at $5.5-million. The company's corporate all-in cost, which includes growth capital, and corporate and exploration costs, was reported at A$2 638/oz for the March quarter.

Gold Road disclosed that its cash and equivalents amounted to about $146.2-million, with no debt drawn following the payment of a $8.9-million, fully franked final dividend of $0.01 a share for the six months to December 31, 2023.

Further, the company revealed that, as at the end of the quarter, it held listed investments with a market value of about $469-million.

Regarding exploration activities, Gold Road stated that rain across Australia had significantly impacted on its exploration efforts during the quarter, leading to delays or suspensions in programmes at Gruyere, Yamarna (including Gilmour) and Mallina.

However, the company noted some encouraging reverse circulation drill intersections returned from immediately north of the Gilmour resource at Yamarna, including 4 m at 7.37 g/t gold.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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