The past year has seen significant progress in the development of the 5.8 million ounce Gruyere Project as the Gruyere JV (Gold Road 50%, operator Gold Fields 50%) moves toward nameplate production in 2020.
Average annual gold production*
Project mine life*
Throughput rate (fresh ore)*
Gruyere a Tier 1 Gold Operation
- Long life, low cost production at Tier 1 gold mine*
- 12 year mine life averaging ~300,000ozpa
- Life of Mine average all in sustaining cost of A$1,025/oz (US$745/oz)
- Gruyere and Golden Highway: 3.9 Moz Reserve, 6.6 Moz Resource
- Simple open-pit and simple processing
- 50:50 JV partner Gold Fields a proven global miner
*Tier 1: greater than 10 year mine life; greater than 300,000 ounces per annum; greater than 3.5 million ounce Ore Reserve and costs at the lower end of the cost curve.
Gruyere Discovery to Production
The Gruyere Gold Mine was discovered by Gold Road in October 2013 on the South Dorothy Hills Trend, 25 kilometres north-east of the Company’s original Yamarna Belt discovery, Central Bore. Within 10 months of Gruyere’s discovery, Gold Road had defined a significant high-grade gold deposit and announced a maiden JORC 2012 Mineral Resource of 96.93 million tonnes grading 1.23 grams of gold per tonne for 3.8 million ounces of contained gold.
The Gruyere Mineral Resource has since grown to 140 million tonnes grading 1.3 grams per tonne for 5.8 million ounces of contained gold, making it one of the largest virgin gold discoveries in Australia.
After completing positive Feasibility Studies on Gruyere, Gold Road announced in November 2016 it would sell 50% of the Project to leading international gold producer Gold Fields Ltd for A$350 million in cash plus a 1.5% Net Smelter Return royalty on production over 2 million ounces.
The transaction fully funded Gold Road for its 50% share of development capital de-risking the Project through the introduction of a partner highly experienced in the development and operation of open-pit gold mines.
Under the Joint Venture Agreement, Gold Fields were appointed the manager to develop and operate Gruyere Gold Road retained responsibility for exploration on the Joint Venture tenements.
Construction of the Project which commenced in 2017 was completed in 2019 with first gold delivered in the June 2019 quarter.
Project milestones achieved through construction included:
- Installation and establishment of the 648 room Gruyere Village by McNally Construction which was opened by the Hon. Bill Johnston, Minister for Mines in August 2017
- Construction of the Anne Beadell borefield, the main water supply for the Gruyere Village and early earthworks by GR Engineering Services and Desert Sands
- Completion by MACA of the Gruyere airstrip, Gruyere main access road, clearing for the Stage 1 Pit and Tailings Storage Facility, and commencement of the Yeo borefield which will provide water for mine operations
- Construction of the 198‐kilometre Yamarna Gas Pipeline, which was completed in June 2018 by Nacap Australia Pty Ltd on behalf of APA Group
- Construction and commissioning of the 45 MW Gruyere powerhouse by Clark Energy on behalf of APA Group in November 2018
- Construction of the Gruyere process plant and associated infrastructure was completed by the Amec Foster Wheeler Wood Group and Civmec Joint Venture (ACJV)
- Award of a 5 year mining services contract to Downer EDI (Downer)
- Mining commenced in November 2018 with first or mined in January 2019
- Updated mine plan lifting production from an average 270,000 ounces per annum to an average of approximately 300,000 ounces per annum
- First gold delivered in the June 2019 quarter