Life added to Gruyere

GOLD Road Resources has reported a substantial increase in reserves at the Gruyere gold mine, a 50:50 joint venture with Gold Fields.
Life added to Gruyere Life added to Gruyere Life added to Gruyere Life added to Gruyere Life added to Gruyere

Gold Road and Gold Fields' Gruyere mine

Reserves, optimised at A$1750 an ounce, now stand at 110.4 million tonnes at 1.28 grams per tonne gold for 4.54 million ounces, a 31%, or 1.07Moz, increase, after 210,000oz of depletion in 2021.

Resources were unchanged at 6.71Moz.

The Gruyere open pit is now expected to operate for an additional two years to 2032 at a future average annual production rate of 350,000 ounces per annum.

As previously reported, Gruyere produced 59,371oz of gold in the September quarter, on a 100% basis, which was below expectations due to unscheduled ball mill maintenance.

Guidance for the December quarter is 71,000-81,000oz in order to make revised 2021 guidance of 250,000-260,000oz (previously 260,000-300,000oz).

All-in sustaining costs for the September quarter rose to $1697/oz from $1659/oz in the June quarter.

Full-year AISC guidance has been revised to $1450-1525/oz from $1325-1475/oz.

Gold Road sold 28,350oz of gold at an average price of $2231/oz during the quarter, including forward sales of 9800oz at $1836/oz.

Free cashflow was negative $8.4 million due to the mill issues.

Gold Road had $123.5 million in cash and equivalents at the end of September and is due to pay a fully franked 0.5c per share dividend tomorrow.

Last week, the company acquired 19.9% of Apollo Consolidated and launched an unconditional $166 million cash takeover offer.

Shares in the gold miner were up 1.1% this morning to $1.37, valuing it at $1.2 billion.