Gruyere project - Project progress update
A feasibility study was completed on the project in October 2016, which showed a 3.52Moz Mineral Reserve (1.76Moz attributable to GFI), supporting an average annual gold production of 270koz (50% attributable to GFI) over a LoM of approximately 13 years.
With early works at Gruyere having started in December 2016, construction has now been in progress for more than 12 months. Importantly, the project remains on schedule to pour maiden gold at the end of the first quarter of 2019. Costs incurred to date are also in line with the budgeted overall project capital of $532 million.
Aside from engineering and construction being 72% and 32% complete respectively at end 2017, another major milestone during Q4 2017 was the signing of a five-year, A$400 million contract to provide mining services at Gruyere.
The mining contractor will commence construction of the mining infrastructure (workshops and office buildings) in the March 2018 quarter and will have a peak workforce of 170 personnel engaged on the Project.
Mining activities are scheduled to commence in the December 2018 quarter utilising a fleet of 225-tonne payload dump trucks, 400-tonne excavators, production blast hole drills and support equipment to move approximately 31 million tonnes of material a year.
Project construction progress in 2017
Final approval from the WA Department of Mines, Industry Regulation and Safety for the construction of the 198 kilometre Yamarna Gas Pipeline (YGP) was approved in Q4 2017.
The pipeline constructor will mobilise its workforce to site to begin works in February. Construction of the pipeline is expected to be completed in the June 2018 quarter.
Civil and structural works and installation of the generators and gas engines have also begun at the 45MW Gruyere Power Station, which will ultimately be connected to the YGP.
Civil works have continued to make good progress with the Bulk Earthworks, completing several key components of the contract, including the 28km Gruyere main access road, sealed airstrip and clearing for the Stage 1 Pit and tailings storage facility (TSF), during Q4 2017.
The Gruyere main access road, which connects the site with the Mt Shenton‐Yamarna Road, and the Gruyere airstrip are both now open. Civil Aviation Safety Authority (CASA) certification to accept larger aircraft is anticipated to be granted in the March 2018 quarter.
Work has begun on the upgrade of the Mt Shenton‐Yamarna Road, which is scheduled for completion in the March 2018 quarter, as well as the construction of the TSF embankment walls using material extracted from the Stage 1 Pit, which will be the final activity undertaken as part of the Bulk Earthworks contract and is scheduled for completion in the June 2018 quarter.
The engineering, procurement and construction (EPC) contractor, had poured 4,200m3 of concrete in the process plant area, including the largest single pour to date of 750m3 for the primary crusher raft slab. A further 10,500m3 of concrete is to be poured before the process plant is complete.
Construction of the seven carbon‐in‐leach tanks is progressing to schedule. The floor and annular plates for the tanks were transported to site from the fabrication facility while welding has commenced on these tanks during late 2017.
Delivery of the first structural steel for the process plant is scheduled to take place in the March 2018 quarter, as is delivery of the ball mill components, which was undergoing final inspection in Perth as of year-end.
All 32 bores that make up the Yeo bore field, which will serve as the main water source for the Gruyere Process Plant, have now been drilled. Installation of the 95km water pipeline connecting the bores to the Process Plant is scheduled to commence in the March 2018 quarter and the 22kV overhead power line servicing the bore field in the June 2018 quarter.