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
The Western Australian Department of Mines and Petroleum has approved the project plans for the Gruyere gold project joint venture (JV) between ASX-listed Gold Road Resources and Gold Fields.

The receipt of the approval ensures that the Gruyere project remains on track for completion in the quarter ending December 2018.

The department's approval is the final approval required to allow for the construction of the Gruyere processing plant and associated infrastructure, as well as development work on the openpit mine, to start.

The next major project development milestone will be the award of major contracts – including the engineering, procurement and construction contract for the processing plant and associated infrastructure, bulk earthworks and power supply – which is expected in March.

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.