Gold Road Resources and Gold Fields are touting their Gruyere joint venture in the northern Goldfields as a global Tier-1 mine after lifting average annual production expectations to 300,000 ounces a year.
The figure, revealed in an update plan for the $621 million project 200km east of Laverton, is up 30,000oz from the 270,000oz presented in a 2016 feasibility, with mill throughput to increase from 7.5 million tonnes a year to 8.2mtpa.
The 50:50 partners said Gruyere was on track for first production in the June quarter and have forecast average all‐in sustaining costs at $1025/oz over the 12-year life of the mine.
Gold Road managing director and chief executive Duncan Gibbs described the road to next year’s first gold production as “an incredible journey”.
“The cash flow Gruyere will produce from 2019 will be substantial and allow us to deliver tremendous value for shareholders, many of whom have backed us since before we made the discovery,” Mr Gibbs said.
“Gold Road continues to work closely with Gold Fields, to safely and successfully conclude construction and commissioning of this world-class gold operation.”
The overall project was 85 per cent complete by the end of last month.
Mining contractor Downer EDI started operations early last month. First ore is due in the March quarter and is forecast to hit a peak of 30mtpa in 2023.
Gold Road shares were up 0.5¢ to 61.5¢ at 12.10pm.