Name of the Project
Gruyere gold project.

Location
The project is located in the Yamarna greenstone belt, about 200 m east of Laverton, in Western Australia.

Client
The project is a joint venture (JV) between Australia’s Gold Road and South Africa’s Gold Fields.
Gold Road and Gold Fields entered into a 50:50 JV over the Gruyere project in November 2016. The South Africa-based major paid A$350-million for its share in the project.

Project Description
A feasibility study on the Gruyere project has confirmed it as one of the longest-life, lowest-cost undeveloped gold deposits in the world, with an estimated mine life of 15 years.

The project has total proven and probable reserves of 91.6-million tonnes grading 1.2 g/t gold.

Development of the project is based on one, large openpit mine and a conventional semiautogenous/ball mill circuit, gravity/carbon-in-leach plant, with throughput of 7.5-million tonnes of fresh ore a year and up to 8.8-million tonnes of oxide ore a year.

Mining activities will be undertaken by a mining contractor, with technical and managerial direction provided by Gold Road.

The feasibility study proposes that the pit be mined in four stages. Stages 1 and 2 comprise two independent pits in the northern and southern ends of the deposit.

Stage 3 will combine the two starter pits and Stage 4 will cut back to the final pit design.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$486 million and an internal rate of return of 24% at a A$1 500/oz gold price. At a A$1 750/oz gold price, the NPV increases to A$910-million, with an internal rate of return of 35%.

Value
The project has a forecast capital cost of A$507-million.

Duration
The project’s execution is based on a five-month early works programme, immediately followed by a 24-month construction and commissioning timeframe, to achieve first gold production by the end of 2018.

Latest Developments
Western Australian Environment Minister Albert Jacob has approved the development of the Gruyere gold project.

“Achieving environmental approval is an important milestone and clears the path for the project’s mining proposal, project management plan and works approval, all of which have been submitted,” Gold Road MD and CEO Ian Murray has said.

The company expects to receive the final approvals for the project in February, after which construction of the processing plant and development at the openpit mine will start.

Meanwhile, Gold Road has said that work to dismantle and relocate the first 300 rooms of the accommodation village for the project has been completed.

The erection of the units has started and will be completed in March. Work to dismantle and install the second batch of 300 rooms will start in February, and is scheduled for completion in the June quarter.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Gold Road Resources, tel +61 8 9200 1600, fax +61 8 9481 6405 or email perth@goldroad.com.au.