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Gold Road Resources has kept a steady hand during the COVID-19 crisis, with stable production targets and a healthy financial position recorded in its March 2020 quarterly report.
After adopting an early response to the pandemic, Gold Road has been able to proceed with its core activities, specifically at the Gruyere joint venture (JV) project in Western Australia.
The Gruyere JV project, conducted in partnership with Gold Fields’ Gruyere Mining Company, saw 1.9 million tonnes of ore processed for the quarter with a recovery rate of 94.1 per cent for 59,585 ounces of gold produced.
This remained in line with the company’s 2020 calendar year guidance of 250,000–285,000 ounces.
A total of 1.8 million tonnes of ore was mined during the March quarter at a mill head grade of 1.06 grams of gold per tonne.
Gold Road’s ore stockpile at Gruyere contributed 100,000 tonnes to the mill feed, with 3.3 million tonnes of ore stockpiles at 0.70 grams of gold per tonne reported in the March 2020 quarter.
The company’s financial position has also put it in good stead during the current circumstances surrounding COVID-19, however the company warned that a downgrade or withdrawal of guidance could arise in the future.
Gold Road stood at a $35 million net cash position through the $100 million revolving credit facility, which was drawn to a total of $80 million.
Gold Road has also enlisted a series of measures to manage the risk of COVID-19 at the Gruyere project.
The company has complied with all aspects the COVID-19 framework introduced by the Western Australian Chamber of Minerals and Energy and the state government.
This includes health screening of its personnel, changes to rosters, increased sanitation and hygiene practices, along with social distancing on site.
Gold Road’s Gruyere project has been able to facilitate social distancing on flights through its all-weather, private air strip for fly-in, fly-out (FIFO) employees.
The company’s current FIFO arrangements operate on a 14 days on, 14 days off basis with approximately 10 per cent of the project’s employees working from home.