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On 15 February 2019, Gold Road Resources Limited (ASX:GOR) announced its annual guidance for its Gruyere Gold project for 2019 gold production at 100,000 to 120,000 ounces (100% basis). The Gruyere project is a 50:50 joint venture between Gruyere Mining Company Pty Ltd (a member of Gold Fields Limited group) and Gold Road Resources Limited. Therefore, Gold Roadâs share of guided production is estimated to be 50,000 to 60,000 ounces. The All?in Sustaining Costs (AISC) guidance for the remainder of 2019 is expected to be in the range of A$1,050 to A$1,150 per ounce. The company anticipates achieving its first gold on target for the June 2019 quarter at the Gruyere Project. Full nameplate capacity is anticipated to be completed within six to seven months of the first gold target.Â
Once commercial production is declared, all?in sustaining costs for the remainder of 2019 are expected to be between A$1,050 and A$1,150, slightly higher than forecast life-of-mine average (A$1,025 per ounce) as production ramps up to full nameplate capacity.
The First forecast capital (FFC) cost estimate remains at $621 Mn (100% basis). Gold Road anticipates funding a total share of the FFC cost of $284 Mn. As of December 31, 2018, Gold Roadâs remaining stock of capital development costs is approximately $40 million. Gold Roadâs remaining share of JV management costs is roughly $10 million.
As on February 14, 2019, the Gruyere JV had mined 185,000 tonnes of ore. A substantial stockpile of ore is planned in preparation for initial production to facilitate a smooth ramp up during 2019.
Gold Road has been monitoring the project progress meticulously. In its recent visit to the site in January, it viewed the projectâs construction nearing its construction completion. The project has developed from conceptual plans study to a well?designed, long?life large scale and low?cost operation, and it expects to target first gold for June 2019 quarter.
In an announcement on February 13, 2019, it provided information on 5% increase in its ore reserves to 3.92 Mn ounces, and 2% increase in its mineral resource to 6.61 Mn ounces at its Gruyere deposits and Golden Highway deposits. It also reported that its attributable mineral resources and ore reserves totals 3.31 Mn ounces and 1.96 Mn ounces respectively.
About the company:
Gold Road is a well-funded mid-tier gold exploration and development company, a pioneer in developing Australiaâs newest goldfield (the Yamarna belt). In November 2016, It is into 50:50 JV with Goldfields for the Gruyere project exploration covering 144 square km. Its current operational plan for Gruyere project is estimated to produce 300,000 ounces of ore production for at least 12 years. Its strategy includes staging project pipeline approach to manage, and measure success exploration portfolio.
On stock information, Gold Road last traded at A$0.795 (up 0.633%, 03:24 PM, February 15, 2019) with the market capitalization of A$693.22 Mn. Its 52 weeks high has been noted at A$0.85 and 52 weeks low at A$0.59. The share price has risen 23.44% in the past three months as on 14 February 2019.
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