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Apr 2016 - Gold Road Res

Searching for the next Major Discovery while taking Gruyere through its DFS, construction and into initial ~300kozpa Production from late 2018

  • Gold Road completed its PFS in February 2016 to almost bankable status for a 7.5mtpa (rated hard rock) operation producing an average ~265kozpa over a 12-year life from MQ19. However in our/ERA opinion, Gruyere's DFS (subject to approvals) could be completed faster than late 2016 and be in ramp-up production possibly in DH2018.
  • Sensitivities and possible alternatives are to be undertaken in the DFS such as steepening the lower wall angles to more than 40 degrees or consider an in-wall ramp which could deepen the pit by ~60m and potentially add ~15mt or ~2 years to the mine life (tpvm of the current resource at 340m deep is ~250kt). Or bringing in the slightly higher grade Attila (~4mt @ ~1.6g/t), and at some stage phase in Central Bore, while higher achievable throughput rates could maintain the production rate at closer to ~300kozpa.
  • Having completed RAB/interface and/or aircore over most of its high priority gold camp targets along its ~200km section of the Yamarna greenstone belt, GOR has delineated 4 main prospect areas in the Northern "half" for initial follow-up being Washburn (Corkwood), Wanderrie, Renegade (prev Khan North) & Yam14-Toto, while re-interpreting Attila, Alaric and Central Bore, plus new considerations north and east of Gruyere.
  • Within the Southern "half" (essentially the Sumitomo 50/50 JV area), the focus is currently on Smokebush, Yaffler, Toppin Hill and Bluebell, and to some degree Landmark and Beefwood. Breelya is considered by the SYJV to be advanced enough as to require the other areas to achieve a similar level of exploration, before taking the ranked prospect targets to the next stage. Smokebush still seems to be the most promising after those late 2015 intersections of ~67m @ 3.1g/t in RC, & 200m further Nth of 6.8m @ 15.9g/t in DD.
  • Written by: Keith Goode
  • Friday, 01 April 2016

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