Gruyere Gold Mine Strengthened by Underground Study

Gruyere JV

New Exploration Confirms Long-Term Potential

Gold Road Resources has reaffirmed the underground mining potential of its Gruyere gold mine in Western Australia following a recent scoping study conducted by SRK Consulting. The study evaluates the viability of underground operations using a sub-level cave mining approach, based on a gold price of $2,240 per ounce.

Gold Road stated that the study "confirms key inputs and investigates the technical and economic viability of underground mining at Gruyere."

Multi-Decade Mine Life and Expanded Resources

Gold Road Resources’ managing director and CEO, Duncan Gibbs, emphasized the long-term benefits of underground expansion. "As Gold Road has long maintained, the underground mining potential has the ability to transform Gruyere into a multi-decade life mine and is expected to add material value to the Gruyere JV and Gold Road shareholders."

The study supports a revised exploration target estimate of 25–31 million tonnes (Mt) at 1.20–1.47 grams per tonne (g/t) of gold, translating to 1–1.5 million ounces (Moz) on a 50% basis. The current mineral resource, excluding ore reserves, stands at 45Mt at 1.51g/t for 2.2Moz.

Investment in Future Expansion

Initial capital costs for the underground development are estimated at $470 million, with total costs reaching $588 million on a 100% basis, including a 30% contingency.

"The results of this underground study, coupled with the commitment of $26 million from the joint venture to confirm the orebody at depth, take us another step closer to realizing the long-term value of mining operations at Gruyere," Gibbs stated.

The JV partners have allocated $26 million for a 60,000-meter drilling program, set to be completed by mid-2026. This program aims to explore ore zones reaching depths of up to 700 meters and will contribute to a pre-feasibility study scheduled for 2026.