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Apr 2014 - Gold Road Res

Gold Road Resources Limited (GOR) – Discovering Gold Deposits along the Yamarna Greenstone Belt, starting with Gruyere

 

  • Gold Road (GOR) currently has 100% control of most of the Yamarna Greenstone Belt ~150km east of Laverton in the WA Goldfields. It has split its holdings broadly into North and South, and has a JV over the Southern Area in which Sumitomo is earning up to 50% through spending $8m by the end of 2016. GOR acts as exploration manager in the JV.
  • Gold Road undertook a systematic evaluation of the Yamarna Greenstone Belt, from its own aeromag of the entire belt, through studies, and world-wide comparisons to delineate nine ~10km to ~20km long gold camp targets, with inner targets based on structure, redox and perceived basin centres. Drilling its first target on the edge of a Dorothy Hills gold camp target area resulted in the potentially >3moz Gruyere discovery in late 2013. 
  • With the steady stream of encouraging higher grade intersections at Gruyere, there is speculation as to how big (moz) Gruyere could be (especially once the results are received from the yet to be drilled possible high grade link between the current 576m downhole in 14DD08 and the values in drillhole RC53 in section N). Gruyere clearly fits into the significant discovery bracket having grown from 0 to potentially 2 to 3moz (so far, April 2014, ERA est) within ~6 months, and a maiden resource expected in SQ2014.
  • Gruyere is clearly a game-changer/company-maker for Gold Road. Before Gruyere, GOR had completed a scoping study on its high grade Central Bore Project with its ~110koz (~23g/t) Imperial Shoot and potential 100ktpa underground mine production at capex ~$18m to $20m. Central Bore could still at some stage be a sweetener for Gruyere. A scoping study on Gruyere could be completed by early 2015.
  • The aim of the recent raising of $10m enables Gold Road to establish whether Gruyere does have a series of high grade shoots plunging to the south, plus delineate how far (N & S) Gruyere may extend to, aside from its possible depth; & complete a concept study.
  • The results from establishing the initial size of Gruyere should indicate what size plant and required capex Gold Road decides to start Gruyere with. Gold Road could start with a 2mtpa rated plant and capex possibly ~$100m (that could achieve ~2.5mtpa) and then expand with a second parallel train into a ~4mtpa rated plant possibly after ~2 to 3 years.

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Apr 2014 - Gold Road Resources

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  • Written by: Keith Goode
  • Monday, 12 May 2014