Gruyere mine’s first gold less than a year away

Posted by Daniel Gleeson on 30th July 2018

Gold Road Resources Ltd and Gruyere Mining Co Pty Ltd, a member of the Gold Fields Ltd group, report the independent third party review of the Definitive Estimate (DE) for the Gruyere gold project including the Final Forecast Capital (FFC) cost estimate has now been completed. The joint venture partners also provide an update on construction activities at the Gruyere site located some 200 km east of Laverton in Western Australia.

  • First gold remains scheduled for the June quarter 2019
  • Revised project FFCl cost estimate of $621 million (level of accuracy range ‐2% / +2%)
  • Gold Road’s estimated share to date of agreed scope changes and force majeure costs is $15 million (50% basis)
  • As at July 27, overall project engineering and construction was 94% and 61% complete respectively with EPC construction (process plant and associated infrastructure) 39% complete
  • Construction workforce currently 440, planning to peak during the September 2018 quarter at 600
  • Yamarna gas pipeline and Gruyere power station completed ahead of schedule, with commissioning anticipated in the September 2018 quarter
  • Primary bulk earthworks contract carried out by MACA has been extended with the award of final TSF work and ROM pad earthworks.

All long‐lead items for the Gruyere process plant, including SAG and ball mills, have been delivered to site from Perth and are awaiting installation by the EPC contractor, Amec Foster Wheeler Civmec Joint Venture (ACJV).

Activities by the ACJV on the Yeo borefield continue, with a significant portion of the pipes welded and pressure testing in progress. The installation of the overhead powerlines is well advanced, with the majority of poles installed and conductor installation approximately 50% complete. A small section in the north of the Yeo Borefield remains impacted by flooding and no activities have commenced in this area. This is not expected to impact completion and start‐up of the plant. Flow rate testing on the Yeo water bores shows flow rates in line to slightly above feasibility study estimates. Commissioning planning is well advanced with early commissioning activities to commence in the final quarter this year.

Appointed mining services contractor Downer EDI is progressing well with the construction of its mining and workshop facilities expected to be completed in the September 2018 quarter. The bulk of the Downer workforce are scheduled to mobilise to site in the December 2018 quarter in time to start pre‐strip activities on the Gruyere open pit in early 2019.

The Gruyere project was discovered by Gold Road in October 2013 on the South Dorothy Hills Trend, 25 km northeast 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 Mt grading 1.23 g/t Au.

The Gruyere Mineral Resource has since grown to 144 Mt grading 1.3 g/t Au, making it one of the largest undeveloped gold deposits in Australia.