Name of the Project
Gruyere gold project.

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

Project Owner/s
The Gruyere Joint Venture (JV) is a 50:50 JV between Gold Field’s Gruyere Mining Company, which manages and operates the Gruyere gold mine, and Gold Road Resources.

Project Description
Gruyere is one of the longest-life, lowest-cost undeveloped gold deposits in the world, with an estimated mine life of ten years, averaging 350 000 oz/y. The expected ounces of gold recovered over the life of the project are estimated at 3.47-million ounces.

The Gruyere JV mineral reserve comprises five openpits and ore stockpiles. The mineral resource includes seven openpits and one underground deposit.

The project has total proven and probable reserves of 4.45-million ounces and resources of 7.38-million ounces.

The operation has a processing plant with a tailings storage facility and is supported by a power station with a gas pipeline and power distribution lines.

Borefields and water-supply infrastructure, centralised administrative offices, engineering workshops, accommodation village, an airstrip and road networks are developed.

The project includes a 12 MW solar power plant.

Potential Job Creation
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%.

Capital Expenditure
In July 2018, an independent third-party review of the definitive estimate for the Gruyere gold project increased the capital cost estimate from A$532-million to A$621-million.

Planned Start/End Date
Gruyere poured its first gold at the start of July 2019; the project is now ramping up to nameplate capacity.

Latest Developments
An updated three-year mine production outlook for the Gruyere gold mine has estimated that the project could produce between 335 000 oz/y and 375 000 oz/y over the outlook period.

Production expectations at Gruyere have been lifted, owing to higher head grades and improved throughput, following the commissioning of a third pebble crusher in late 2023.

Studies on the seven-stage Gruyere pit design have also confirmed the life-of-mine until 2032, with production anticipated to reach 350 000 t/y in this period.

Gruyere marked its first one-million-ounce production in April, less than four years after pouring its first gold. Gold Road has said that, with the strong production outlook, the mine is expected to deliver two-million ounces in 2025.

Once Gruyere has produced two-million ounces, Gold Road will receive an uncapped 1.5% net smelter return royalty from Gold Fields on its 50% share of production. This is in addition to Gold Road’s 50% share of ongoing gold production.

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

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