Gold Road Resources Ltd (ASX:GOR) has completed its update of the Gruyere Mineral Resource estimate at its 100% owned Gruyere Gold Project 200 kilometres east of Laverton, Western Australia.
The updated resource has increased by 10% and now stands at a total of 147.7 million tonnes at 1.30 g/t gold for a whopping 6.16 million ounces of gold.
The Measured Resources category has increased by 633% to 13.86 million tonnes at 1.18 g/t gold for 0.53 million ounces, which is 9% of the total. This was upgraded from an Indicated category.
This equates to approximately two years of pre-feasibility study production.
The major changes to the evaluation parameters used in reporting the resource include lowering the cut-off grade to 0.5 g/t gold compared to the previous 0.7 g/t gold cut‐off.
The increased price of gold from A$1,600 to A$1,700 per ounce gold has also been taken into consideration in the new report.
Deeper drilling that will target extensions to the resource will be completed in the medium to longer term.
Meanwhile, Sumitomo Metal Mining Co. Ltd, has recently increased its interest in the South Yamarna Joint Venture (SYJV) to 50%.
Under the terms of the Joint Venture Agreement signed between Gold Road and Sumitomo in May 2013, Sumitomo was required to contribute A$8 million to exploration on the South Yamarna tenements by the end of 2016 to earn a 50% share in the SYJV. This commitment was met in March 2016.
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