Name of the Project
Gruyere gold project.

Location
The project is located in the Yamarna greenstone belt, about 200 m east of Laverton, in Western Australia.

Project Owner/s
The project is a joint venture (JV) between Australia’s Gold Road Resources and South Africa’s Gold Fields.

Gold Road and Gold Fields entered into a 50:50 JV over the Gruyere project in November 2016. The South Africa-based major paid A$350-million for its share in the project.

Project Description
A feasibility study has confirmed Gruyere as one of the longest-life, lowest-cost undeveloped gold deposits in the world, with an estimated mine life of 12 years. The expected ounces of gold recovered over the life of the project are estimated at 3.47-million ounces.

The project has total proven and probable reserves of 91.6-million tonnes grading 1.2 g/t gold. The Gruyere JV has also awarded mining leases over additional mineral resources at Central Bore and Attila-Alaric, which do not form part of the Gruyere project feasibility study.

Development of the project is based on a large openpit mine, conventional semiautogenous grinding/ball mill circuit and gravity/carbon-in-leach (CIL) plant, with throughput of 7.5-million tonnes of fresh ore a year and up to 8.2-million tonnes of oxide ore a year.

A mining contractor will undertake activities, with Gold Road providing technical and managerial direction.

The feasibility study proposes that the pit be mined in four stages. Stages 1 and 2 comprise two independent pits at the northern and southern ends of the deposit. Stage 3 will combine the two starter pits and Stage 4 will cut back to the final pit design.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at an 8% discount rate, of A$486-million and an internal rate of return (IRR) of 24% at a A$1 500/oz gold price. At a A$1 750/oz gold price, the NPV increases to A$910-million, with an IRR of 35%.

Capital Expenditure
In July 2018, an independent third-party review of the definitive estimate for the Gruyere gold project increased the capital cost estimate from A$532-million to A$621-million.

The updated capital cost included scope changes and force majeure costs of A$30-million, as well as a A$30-million contingency.

Key contributors to the increased capital cost included a range of scope changes that will improve the operability and maintainability of the process plant and infrastructure, as well as advance operating and capital expenditure, including the buying of additional equipment previously intended to be hired.

Costs will be funded from existing cash and working capital facilities.

Planned Start/End Date
Gruyere poured its first gold at the start of July 2019; the project is now ramping up to nameplate capacity.

Latest Developments
Gold production increased for the December 2020 quarter on the back of increased plant throughput at the Gruyere gold mine.

Gold production in the December quarter reached 70 794 oz on a 100% basis, compared with the 55 919 oz produced in the September quarter, with production for 2020 reaching 258 173 oz, which was in line with the guidance of between 250 000 oz and 270 000 oz.

All-in sustaining costs for the full year were A$1 273/oz, which was at the lower end of the revised cost guidance of between A$1 250/oz and A$1 350/oz.

The project processed 2.1-million tonnes of ore, at a head grade of 1.12 g/t during the quarter under review, with gold recoveries reaching 91.8%.

The 2021 production guidance for the Gruyere JV is expected in the March quarter of 2021, with the announcement of the 2021 mine plan.

Key Contracts,  Suppliers and Consultants
Amec Foster Wheeler and Civmec (EPC), APA Group (pipeline and gas-fired power station), MACA (airstrip) and MACA and ACJV (Yeo borefield construction), Amec Foster Wheeler Civmec JV (EPC contractor).

Contact Details for Project Information
Gold Road Resources, tel +61 8 9200 1600, fax +61 8 9481 6405 or email perth@goldroad.com.au.