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 Resources 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. The Gruyere JV also has granted mining leases over additional mineral resources at Central Bore and Attila-Alaric, which do not form a part of the Gruyere project feasibility study.

Development of the project is based on one large openpit mine and a conventional semiautogenous/ball mill circuit, gravity/carbon-in-leach (CIL) 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.

A mining contractor will undertake activities, with Gold Road providing technical and managerial direction.

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 (NPV), at an 8% discount rate, of A$486 million and an internal rate of return (IRR) 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 IRR of 35%.

Value
The project has a forecast capital cost of A$532-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
Mining contract tenders have been shortlisted.

The project team has shortlisted three tenderers for the mining services contract. Award of the contract is expected in the December 2017 quarter. Mobilisation of the successful mining contractor is scheduled for the first quarter of 2018.

Meanwhile, the engineering, procurement and construction (EPC) contractor, Amec Foster Wheeler Civmec joint venture (ACJV), has mobilised its construction crew to Gruyere, set up temporary offices and workshops, and has started the detailed excavation works, formwork and rebar installation in the process plant area. The concrete batch plant has been commissioned and first concrete pour in the CIL area is under way.

The JV has also started the fabrication of the steel plate for the CIL tanks, which are the first of the major components required for the process plant construction.

MACA is continuing with the development of the Gruyere airstrip, which is adjacent to the Gruyere village. Upon completion and commissioning, the airstrip will have the capacity to receive up to 100-seater aircraft.

Construction of the Gruyere main access road is on schedule and expected to be open for use in the December 2017 quarter.

Mining of the Gruyere openpit is on schedule, with MACA starting the clearing for the Stage 1 Pit. To support the mining operations, the clearing for the tailings storage facility has been completed. The next phase of works will be building the TSF embankment walls with material extracted early from the openpit.

MACA has started initial construction works for the installation of the production and monitoring bores for the Yeo borefield. To date, eight production bores have been completed, with the remaining 24 bores scheduled for construction over the December 2017 quarter. The Yeo borefield is a joint construction project between MACA and ACJV.

CorpCloud have completed the installation and provisioning of the dedicated microwave link. The link will provide highly reliable voice and data services throughout the construction site to meet project and operational requirements, and the Gruyere village to provide connectivity for the workforce to family and friends.

Commissioning of the 648 rooms at the Gruyere village, offices and recreational facilities was completed in July 2017.

Key Contracts and Suppliers
Amec Foster Wheeler and Civmec (EPC), APA Group (pipeline and gas-fired power station), MACA (airstrip) and MACA and ACJV (Yeo borefield construction).

On Budget and on Time?
The project remains on schedule and budget.

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