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Australia's biggest new gold mine will be even bigger after the company behind it announced on Thursday it would produce 30,000 ounce per annum more than originally forecast.
Gold Road Resources and Gold Fields Limited said the average annual production for the 12 year life of their joint venture Gruyere gold mine had increased to 300,000 ounces per annum thanks to the purchase of more processing capacity.
A 2016 feasibility study predicted the mine, located 200 kilometres east of Laverton in WA, would produce 270,000 ounces per annum.
The updated forecast confirms Gruyere as a tier one gold mine, which means a mine with a life greater than 10 years, low cost and greater than 300,000 ounces per annum production.
Gold Road managing director and CEO, Duncan Gibbs, said it had been an incredible journey for Gold Road since discovering Gruyere in 2013.
"The cash flow Gruyere will produce from 2019 will be substantial and allow us to deliver tremendous value for shareholders, many of whom have backed us since before we made the discovery," he said.
"Gold Road continue to work closely with Gold Fields, to safely and successfully conclude construction and commissioning of this worldâ€class gold operation.”
Gold Fields executive vice president Australasia Stuart Mathews, said first gold remained on target for the June 2019 quarter.
The update included changes to the pit design and the addition of two new ore deposits.
Argonaut metals and mining analyst James Wilson said it was a positive announcement and he predicted the mine would start testing its facilities in the new year.
Gruyere is the most significant gold mine since AngloGold Ashanti Australia and Independence Group's Tropicana mine 330 kilometres east-northeast of Kalgoorlie that started production in 2013.
"There’s nothing else out there being built of this magnitude he said.
Gold Road Resources said overall construction is at 85 per cent and their shares closed at $0.62, 0.01c up from the previous close.