Gold Road project to cost $507m

Gold Road Resources has released its feasibility study on the Gruyere gold project near Laverton, which has detailed a $52 million increase in capital costs and a longer mine life.

Gold Road said it would now cost $507 million to bring Gold Road into production, with the feasibility study confirming an ore reserve of about 3.5 million ounces over a 13-year mine life and a 15-year project life.

The study supports average annual production of 270,000 ounces from a single large open-pit mine, and a 7.5 million tonne per annum processing facility.

All-in sustaining costs have been estimated at $945/oz.

“Since the completion of the initial scoping study in 2015, a significant amount of work has been invested in the Gruyere project studies, culminating in this impressive feasibility study,” Gold Road managing director Ian Murray said.

“While the feasibility study suggests a substantial project life, the demonstrated exploration potential of Gruyere and the surrounding Yamarna region means that there is significant potential to extend the life beyond the current 15 years.

“We expect to be in a position to complete the funding aspects for the project and make the associated investment decision in early 2017.”

Gold Road shares were 3.8 per cent higher to 59.7 cents each at 10:30am.