Gold Road Resources Limited (ASX: GOR) has reported a 31% increase in ore reserves at its Gruyere JV in Western Australia.
Updated open pit ore reserves at the project are reported at 110.4 million tonnes @ 1.28 g/t Au for 4.54 million ounces, representing an increase of 1.07 million ounces compared to December 2020.
Gold Road notes that Gruyere mineral resource remains unchanged from the previous December 2020 estimate of 155.8 million tonnes @ 1.34 g/t Au for 6.71 million ounces. This earlier Mineral Resource included 1.2 million ounces of indicated mineral resources below the ore reserve pit design.
“This is a material increase in Ore Reserves that further establishes Gruyere as a Tier One Gold Mine”
The project’s open pit mine life has also been extended, taking production out to 2032 at a scheduled future average annual production rate of approximately 350,000 ounces per year.
Addressing the news, Gold Road Resources Managing Director and CEO Duncan Gibbs said: “This is a material increase in Ore Reserves that further establishes Gruyere as a Tier One Gold Mine. Very few gold producers can reliably claim such a long-life production outlook with confidence. The update is the culmination of multiple comprehensive high-quality studies undertaken by the Gruyere Joint Venture. Gruyere will be amongst the deepest Australian open cut gold mines achieving a final depth of approximately 500 metres.”
Gold Road has stated that the ore reserve increase was calculated based on the inclusion of indicated mineral resources below the previous ore reserve, and the completion of comprehensive studies carried out between 2019 and 2021.
The ore reserve pit design was derived from an optimisation at a gold price of AUD$1,750 per ounce, and incorporates steeper geotechnical slopes within fresh rock.
The Gruyere Project is a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group which manages and operates the mine.
Images: Gold Road Resources Limited
