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Gold Road Resources Ltd

Gold Road Resources hits up to 12.40 g/t gold in drilling at Yamarna in WA

The drill program was designed to test for sub-parallel structures west of the Gilmour Main Shear and east of Morello to allow further extensional targeting along the trend.

Overview of Gruyere
Yamarna project is 200 kilometres east of Laverton in WA and is divided into three main project areas

Gold Road Resources Ltd (ASX:GOR) has received positive diamond and reverse circulation (RC) assay results of up to 12.40 g/t gold in recent drilling at the Yamarna project in Western Australia.

The Gilmour Main Shear was intersected in all drilling and is identified as a high-grade shoot currently bound by the Pink Fault to the south and Waters Fault to the north.

To support the estimation of a potential maiden mineral resource at Gilmour, a total of eight diamond holes for 2,919 metres and 13 RC holes for 2,643 metres have been completed.

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

Map showing selected diamond and RC drill results from across the Yamarna tenements.

Gold Road executive director of exploration and growth Justin Osborne said: “Our first drilling for 2019 has given us a greater understanding on the geological controls to economic gold mineralisation on the Gilmour and Morello prospects.

“At Morello, we identified several potential shoots to be assessed with further drilling.

“We are embarking on a new drilling program at Gruyere to allow us to further optimise and increase the near-term value to be delivered from the mine as we edge closer to our initial gold pour and subsequent commercial production.”

Best Gilmour intersections include:

  • 2.06 metres at 12.40 g/t gold from 357.2 metres;
  • 4 metres at 4.96 g/t from 199 metres;
  • 7 metres at 2.20 g/t from 146 metres; and
  • 2.78 metres at 5.25 g/t from 401.43 metres.

Best results from Morello were 3 metres at 6.80 g/t from 123 metres and 3 metres at 4.94 g/t from 157 metres.

The potential for repeat shoots associated with dip flexures at depth remains open with geological assessment in progress to understand the detailed structural controls.

A preliminary program of base line metallurgical test work was also completed on five RC samples to determine potential gold extraction recovery via gravity gold separation and cyanide leaching.

Test work indicates total gold recoveries ranging from 89% to 99% with substantial gravity recoverable gold ranging from 28% to 82% and averaging 61%.

The samples were chosen to represent mineralisation from various weathering horizons and grade ranges.

 

 

At the nearby Gruyere JV a 9,000-metre drilling program has begun with the intention of extending the indicated resource below the current ore reserve pit design and delineating the limits of mineralisation at the southern end of the Gruyere porphyry.

Extending the limits of the indicated resource will allow for strategic evaluation and mine optimisation applying improvements to modifying factors such as improved pit-slope angles, operational cost reductions and gold price.

In November 2016 Gold Road entered into a 50:50 joint venture with Gold Fields Limited (NYSE:GFI) for the Gruyere JV covering about 144 square kilometres.

Beginning these studies now will position the JV to potentially bring forward additional value in the mine plan.

6.6 million ounce resource

The Yamarna leases contain a gold mineral resource of 6.6 million ounces, including 5.8 million ounces at the Gruyere deposit and an ore reserve of 3.9 million ounces.

All current resources and reserves are contained within the Gruyere JV project areas, of which Gold Road owns 50%.

The current operational plan for Gruyere indicates the project’s reserve supports  average annual production of 300,000 ounces for at least 12 years. 

Construction is nearing completion on the project, with first gold scheduled for this quarter.

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Price: $1.31

Market: ASX
Market Cap: $1.15 billion
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Gold Road Resources produces first gold bars from nation's newest gold project

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