Gruyere gold production rising out of rain-soaked mire, still has some way to go to reach previous heights

Gold production increased during the September quarter at the Gruyere mine in the remote northern Goldfields following the soaking that dampened output during the June and March periods. However, the operation still has some way to go before it reaches the heights of the September quarter last year. Gold Road Resources, which owns the mine in a 50-50 joint venture with South African giant Gold Fields, on Wednesday reported that Gruyere produced 68,781 ounces of gold at an all-in-sustaining cost of $2551/oz during the just-completed September quarter. This compared with 62,535oz at $2441/oz for the June quarter, when operations were shut down during April after heavy rainfall in March. The rain cut off road access from the west to the mine 160km north-east of Laverton. Production in the March quarter was 64,323oz at $2194/oz. However, Gruyere churned out a record 88,668oz at $1682/oz during the September 2023 quarter. Gold Road on Wednesday reported that total material movement increased quarter-on-quarter to a record 14.2MT following a continued improvement in mining productivity. The company said the September quarter mining and production rates reflected the ongoing focus on the stage four pit in order to provide full access to ore during the December quarter. “As a result, the proportion of higher-grade mined ore delivered to the process plant will increase during the (December) quarter, reducing the need to supplement milled ore feed with lower-grade stockpiles,” the company said. Gold Road said total ore processed during the quarter increased to 2.3MT at a head grade of 1.05g/t, with metallurgical recovery of 91.4 per cent. “The plant head grade (1.05g/t) remained lower than mined grade (1.29g/t) as the operation continued to process a blend of low-grade stockpile with higher grade run-of-mine ore from the open pit, particularly early in the quarter,” the company said. “Head grades averaged 1.22g/t during the month of September as the proportion of mined ore processed through the plant increased during the quarter relative to lower grade stockpiles. “As noted above, the proportion of higher-grade mined ore delivered to the process plant will increase in the December quarter and in 2025, which will result in an increase in ounces produced.” Gold Road said the higher AISC per ounce for the latest quarter reflected the increased mining material movement and a one-off historical mining contractor labour-related claim of about $10 million. The company said production guidance for the 2024 calendar year was anticipated to land at the lower end of the 290,000-305,000oz range, with AISC guidance staying at $2050/oz-$2200/oz.