SURFACE

Gruyere making tracks toward 2019 start-up

Progress toward a June quarter 2019 start and first gold is still on track

Staff Reporter

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The companies said the SAG and ball mill shells at Gruyere, 200km east of Laverton, are installed, the first phase of ROM pad civil works has wrapped up and the assembly of the primary crusher has commenced.

Development of the mine workshops and support facilities are all now complete, and powerhouse commissioning is now underway. First electricity supply is expected there in November.

Also next month, the JV said, the mining fleet and operations team - which has already begun mobilisation - will be ready for the commencement of mining operations.

Overall, Gruyere is making good progress, officials said, with engineering now 96% complete, construction 71% complete and EPC construction (process plant and associated infrastructure) at the 57% completion point as of September 30.

In addition, weather conditions have been "supportive" for the work of its EPC contractor Amec Foster Wheeler Civmec Joint Venture (ACJV) and mining services contractor Downer EDI Mining.

"It is clear from my observations … that this world-­class, long-­life gold mine development will deliver significant and sustained value for our shareholders into the future," Gold Road managing director and CEO Duncan Gibbs said.

"I look forward to providing future updates on Gruyere's development as we approach the first gold production target."

The Gruyere gold project was discovered by Gold Road in October 2013. Construction on the project began last year.

In the 2019 calendar year, Gruyere is expected to produce between 170,000oz and 230,000oz; steady-state, it is projecting an annual average of 270,000oz. Life-of-mine has been estimated at 13 years.

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