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Highlights
- $470M Initial Investment: Significant capital committed to develop underground mining infrastructure.
- High-grade Mineral Resource: Over 2 million ounces of gold outlined in joint venture project.
- Extended Drilling Program: $26.4 million allocated to enhance understanding of the mineral extent, completing by mid-2026.
Gold Road Resources (ASX:GOR) and Gold Fields (JSE:GFI) are set to significantly enhance the mining infrastructure at their Gruyere joint venture, located in Western Australia. The project, shared equally between the two entities, is now gearing up for an extensive underground development following the completion of a detailed scoping study.
The study outlines a substantial $470 million investment required to kickstart the underground mining phase. This initial capital will set the foundation for a total expected expenditure of $588 million on the mining infrastructure alone, on a 100 percent basis. The decision follows the successful delineation of a promising mineral resource at Gruyere, estimated to contain 45 million tonnes of ore at an impressive grade of 1.51 grams of gold per tonne, translating to approximately 2.2 million ounces of gold, reflecting the stakes held by both companies.
In addition to infrastructure development, Gold Road Resources and Gold Fields are bolstering their commitment to further exploration. They have allocated an additional $26.4 million towards an intensive drilling program aimed at confirming and expanding the known ore body. This strategic investment underscores the project's potential and aims to ensure that the mineral resource extends significantly within the mining area. The program is scheduled to continue until mid-2026, offering substantial data to refine future mining efforts.
Furthermore, exploration targets for the underground segment are set ambitiously, with estimates ranging from 25 million to 31 million tonnes of ore at grades between 1.20 and 1.47 grams per tonne. This target suggests an additional 1 million to 1.5 million ounces of gold could potentially be extracted from the underground operations, solidifying Gruyere's status as a significant player in the gold mining sector.
This strategic development not only promises to enhance the production capacity at Gruyere but also significantly boosts the economic prospects of the region. The joint venture between Gold Road Resources and Gold Fields marks a pivotal step towards tapping into the substantial gold reserves, ensuring sustained growth and operational efficiency in the long run. The companies' forward-looking investment and ongoing commitment to exploration are set to establish Gruyere as a cornerstone of their portfolio.
