Gold Road Resources : Gruyere Attains Commercial Production
October 09, 2019 at 04:36 am EDT
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ASX Announcement
9 October 2019
GRUYERE ATTAINS COMMERCIAL
PRODUCTION
Highlights
Gruyere attains commercial production at the end of September 2019
Annual guidance for 2019 gold production (100% basis) now anticipated at the upper end of guidance range of 75,000 to 100,000 ounces
All-inSustaining Cost unchanged for December 2019 quarter between A$1,050 to A$1,150 per ounce, as guided in February 2019
Gold Road Resources Limited (Gold Road) and Gruyere Mining Company Pty Ltd, a member of the Gold Fields Limited Group (Gold Fields), are pleased to advise that commercial production was attained at the end of September 2019 at the Gruyere Gold Mine (Gruyere), located approximately 200 kilometres east of Laverton in Western Australia.
Commercial production was attained slightly ahead of guidance for mid-way through the anticipated ramp-up period of 6 to 7 months. The ramp up commenced after the commissioning of the ball mill in early August 20191.
CONTACT DETAILS
Gold Road Resources Ltd
Level 2, 26 Colin St
West Perth WA 6005
www.goldroad.com.au
perth@goldroad.com.au T +61 8 9200 1600
ASX Code GOR
Gold Fields
Level 5, 50 Colin St West Perth WA 6005
www.goldfields.com T +61 8 9211 9203
JSE:GFI NYSE: GFI
Management determined commercial production based on a pre-determined minimum total process plant throughput rate of 70% of nameplate capacity, and a minimum average gold recovery of 85% of expected life of mine metallurgical recovery, measured over a month, with the expectation that these metrics will continue to be met or exceeded in the future.
Costs incurred in developing and commissioning the Gruyere Project, including the process plant and associated infrastructure, have been capitalised to the balance sheet up to the point of commercial production. Having attained commercial production, reporting of All-in Sustaining Cost (AISC) and other financial metrics will commence.
As throughput rates and gold recoveries during ramp-up have been above expectations, the Gruyere Joint Venture now anticipates gold production for calendar 2019 to be at the upper end of guidance of 75,000 to 100,000 ounces (100% basis). AISC for the December 2019 quarter is guided between A$1,050 and A$1,150, slightly higher than forecast life-of-mine average (A$1,025 per ounce2) as production continues to ramp-up to full nameplate capacity. This AISC range is in line with guidance released in February 20193.
The Final Forecast Capital Cost remains within the previously announced A$621 million (100% basis, +/- 2%)4.
ASX announcement dated 5 August 2019
ASX announcement dated 6 December 2018
ASX announcement dated 15 February 2019
ASX announcement dated 30 July 2018
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Gruyere is a global Tier 1 gold mine with a long operating life and forecast high margins. Life-of-mine average annual production is forecast at approximately 300,000 ounces per annum at average AISC over a 12-year life of approximately A$1,025 per ounce.
For further information, please visit www.goldroad.com.au or contact:
Gold Road Resources
Gold Fields Australia
Duncan Hughes
Stuart Mathews
Manager - Business Development & Investor Relations
Executive Vice President Australasia
Tel: +61 8 9200 1600
Tel: +61 8 9211 9238
Media Enquiries - Cannings Purple
Warrick Hazeldine
whazeldine@canningspurple.com.au
Tel: +61 417 944 616
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Disclaimer
Gold Road Resources Limited published this content on 09 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 October 2019 08:35:11 UTC
Gold Road Resources Limited is an Australia-based company that is engaged in mine operations through a joint venture18, sale of gold, and mineral exploration. The Companyâs segments include Operations, Exploration and Investment. The Exploration segment includes the activities on all mineral exploration, including all joint venture tenements. The Investment segment includes the activities on equity securities investments. The Companyâs projects include Gruyere Gold Mine and the Golden Highway. The Gruyere Gold Mine is located approximately 1,200 kilometers north-east of Perth in Western Australiaâs north-eastern Goldfields, is a 50:50 joint venture between Gold Road and Gruyere Mining Company Pty Ltd. The Golden Highway is located just 25 kilometers west of the Gruyere Gold Mine on the western side of the Yamarna Greenstone Belt. It holds approximately over 18,000 square kilometers of exploration tenure across Western Australia, South Australia, and Queensland.
GOLD ROAD RESOURCES LIMITED 
