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Gold Road Resources confirms maiden guidance as production to begin this quarter

The company is developing the Gruyere Gold Project in Western Australia.
aerial view of processing plant
First gold is on target to be produced in the second half of this June quarter

Gold Road Resources Ltd (ASX:GOR) has taken the opportunity to confirm maiden guidance for 2019 gold production in its March quarterly report released today.

Guidance is for 100,000 to 120,000 ounces gold production in CY2019 at an all-in sustaining cost (AISC) of between $1,050 and $1,150 per ounce.

The development of the Gruyere Gold Project is nearing completion at 97% with works in progress across the site and progressive handover to commissioning. 

The project schedule remains on budget with first  gold on target for the second half of the June 2019 quarter.

READ: Gold Road Resources on track for first gold from Gruyere this quarter

As  planned,  mining  commenced  during  the  quarter  with  approximately  800,000  tonnes  of  ore  mined  and  stockpiled. 

The substantial ore stockpile largely de‐risks mining related aspects of the operation through the commissioning and ramp‐up phase.

Solid balance sheet

Gruyere’s final forecast capital cost estimate, excluding JV support costs, remains unchanged at $621 million, of which $284 million is attributable to Gold Road.

Gold Road anticipates further capital payments of approximately $27 million

As at 31 March 2019, the company had cash of $49 million and $117 million of undrawn debt facilities.

READ: Gold Road Resources leveraged to Cygnus Gold’s drilling at Wadderin and Lake Grace

Elsewhere, Gold Road is earning into four projects covering over 5,000 square kilometres in Western Australia’s Wheatbelt region.

Partner and operator Cygnus Gold Ltd (ASX:CY5) recently commenced drilling programs on the two joint venture projects in which Gold Road is earning-in.

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