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Mar 2015 - Gold Road Res

Gold Road Resources Limited (GOR) – Working on its PFS for >200,000ozpa Gold Production, potentially from 2018

  • Having completed its scoping study on a possible 5mtpa operation at Gruyere in January 2015, Gold Road (GOR) has moved into a two-stage PFS in 2015, initially identifying the optimum production rate between 5mtpa & 10mtpa (possibly 7.5mtpa?), followed by detailed design. Assuming that the PFS is completed by Dec 2015, GOR could then start a DFS, financing and construction with a view to producing >200kozpa gold from late 2017/early 2018 at a targeted AIC of <A$1000/oz.
  • Given that a typical Australian designed plant often treats ~20% more than its designed rate, the initial oxidised throughput rate of a 5mtpa plant could easily be 5.5mtpa or higher, and we have used 5.5mtpa in our/ERA model scenario, expanding the plant after 2 years by 2mtpa to achieve a throughput rate of ~7.5mtpa or so. Grades are expected to be fairly homogenous at ~1.2g/t, which with a ~95% recovery gives >200kozpa at 5.5mtpa. The scoping study also included Central Bore, whereas our modelling excludes it until  possibly later in Gruyere's life, reducing initial risk and capex.
  • Gruyere is currently in PFS infill aimed at taking the bulk of its in-pit resource up to indicated status and reducing the size of the waste blocks when it is expected to be reported in SQ2015 at potentially >5moz (ERA estimate). However, GOR also has an extensive exploration programme firmly focused on making another Yamarna greenstone belt discovery possibly amongst the ~15km long goldfield targets containing Smokebush, Wanderrie, Beefwood, Monteith or Corkwood with results from Mar/Apr 2015.
  • Although it is early and only a significant intersection, being 59m @ 3.03g/t from 127m (including at least 6 separate intersections ranging from 5.0g/t to 20.6g/t), the Smokebush result over a ~800m strike length could become Gold Road's next discovery.

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Mar 2015 - Gold Road Resources

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  • Written by: Keith Goode
  • Sunday, 01 March 2015