March turned out to be a solid quarter for Gold Road, which is bidding for control of DGO Gold whose main asset is 14.4% of De Grey Mining and its large gold discovery in the Mallina region of WA Pilbara.
Gold Road issued a brief update on the March quarter performance of its key asset, the 50% owned Gruyere gold mine in WA which saw another improvement with gold sales and the average price ending higher, along with the average grade of ore processed at the mine in the three-month period.
Goldfields owns the other 50% of Gruyere and is the manager/operator, meaning Gold Road is an investor in the mine which is being expanded via a major underground operation over the next couple of years.
In the statement to the ASX (and with details included in the bidder’s statement to be sent to DGO shareholders) on Thursday, Gold Road revealed that Gruyere produced 71,135 ounces of gold (on 100% basis) during the March quarter, “in line with expectations.”
That compares with production of 66,213 ounces in the year ago quarter and 67.813 ounces in the December, 2021 quarter.
Gold Road had gold sales of 35,080 ounces at an average realised price of $A2,434 an ounce in the March quarter, down slightly from the 35,460 ounces sold an average price of $A2,309 in the December quarter and 32,100 ounces in the march 2021 quarter which fetched an average price of $A2,138.
Gruyere processed 2.1 million tonnes in the quarter at an average grade of 1.17 grams of gold to the tonne and a 91% recovery rate. Compared to the March, 2021 quarter, the tonnes processed were the same but the average grade was slightly lower at 1.12 grams to the tonne. Gold recovery was similar
Gold Road said two scheduled plant shutdowns for relines of the SAG and ball mills were successfully completed during the quarter and the partners are looking to lift production rates “in line with annual guidance of 300,000- 340,000 ounces (150,000 – 170,000 ounces attributable to Gold Road). Both process plant throughput and head grades are anticipated to improve through the year as guided.”
Gold Road shares ended down 0.6% to $1.50.
