For the second time since June, Gold Road Resources has cut its full-year production guidance, after more operational problems at the Gruyere gold mine in WA.
The mine is operated at a joint venture, between Gold Road Resources and the Gruyere Mining Company each holding a 50% stake.
Back in late June, Gold Road revealed the first round of problems that saw a cut in guidance.
Gold Road now anticipates gold production for the 2021 calendar year will be within the lower half of guidance of 260,000 to 300,000 ounces.
The company said disruptions at the Gruyere processing plant operations with a torn mill feed conveyor belt forced the company make temporary repairs and cut ore processing rates.
Following the shutdown of the milling circuit to replace the conveyor belt, a coupling on the ball mill failed (it crushes the ore).
In late September, more problems emerged and guidance was again adjusted and on Monday the company explained the latest trim.
It said that during an operational ramp-up at the site last month, following a planned maintenance shutdown, a ball mill motor bearing failed, stopping operations, while the issue was resolved.
As a result, the initially short maintenance shutdown was extended by a full-week, while a specialist team assessed and resolved the mechanical failure. Once rectified, the site returned to normal processing operations on September 24.
Gold Road said as a result of the seven-day extended shutdown as well as other operational disruptions this month, it expects to produce 53,000 to 57,000 ounces of gold from the site over September.
The monthly downgrade has had an adverse knock-on effect to Gold Road’s full year guidance.
Despite previously being on track to reach the top end of its original guidance of 285,000 ounces, the operational shutdown has pulled the full-year expected production to between 250,000 and 270,000 ounces.
In effect the cut is up to 50,000 ounces or around 16% (based on the 300,000 maximum at the top of the first range).
