One of Australia’s newest billion-dollar companies is sitting on more than two million tonnes of ore ready to be processed to extract gold.
Gold Road Resources recently poured the first bars of gold from its Gruyere mine, and expects to be running at commercial production within four months.
The company is close to joining the ASX200, likely triggering a series of index funds to buy stock and send it even higher.
Managing director Duncan Gibbs said the 50:50 joint venture with Gold Fields at Gruyere, near Laverton in Western Australia, was ready to produce gold once all the processing equipment was up to speed.
“We’ve got about two million tonnes of ore that we’ve mined to date,” he told reporters in Melbourne on Monday.
“What that means is, it really doesn’t matter what happens with mining, our ramp up to full production is purely driven by plant (equipment). We’re not hamstrung by the mining schedule.”
The 50:50 joint venture with New York-listed Gold Fields covers the Gruyere mine – one of the most significant gold discoveries in Australia this century – and 144 square kilometres of other land.
The Gruyere mine is expected to produce 300,000oz a year of gold for the next 12 years, with all-in sustaining costs of $1025 an ounce.
But Gold Road Resources controls about 6000 square kilometres of other potential dig sites, and the company is spending about $20 million a year on exploration.
The company is aiming to find another rich gold discovery on sites it owns 100 per cent of, drilling in areas that have been untouched by other mining exploration.
Gold prices edged higher to $US1,414 on Monday, leading gold miners to post gains on the ASX, with Gold Road posting a 6.28 per cent increase to $1.27.
Mr Gibbs spoke with retail investors on Monday, and will address the Melbourne Mining Club on Tuesday night.
Source: Western Suburbs Weekly, 15 July 2019