Gold Road Launches Underground Drilling to Boost Gruyere Beyond 2032

Strong 2025 Production Outlook

Gold Road Resources has released its 2025 annual guidance for the Gruyere Gold Mine, forecasting production between 325,000 and 355,000 ounces of gold. This represents a substantial increase compared to the disrupted 2024 output, driven primarily by the successful completion of Stage 4 pit stripping, which now allows full access to higher-grade ore bodies. The attributable production to Gold Road, reflecting its 50% stake in the Gruyere JV, is projected at 162,500 to 177,500 ounces.

The company anticipates an all-in sustaining cost (AISC) range of A$2,400 to A$2,600 per ounce, incorporating inflationary pressures, increased royalties due to higher gold prices, and costs related to conveyor upgrades, tailings dam lifts, and expanded waste stripping. Notably, this guidance includes a one-off village expansion to support the larger workforce required for increased material movement and future mining developments.

Three-Year Production Outlook and Operational Enhancements

Looking beyond 2025, Gold Road projects a steady production range of 335,000 to 375,000 ounces per annum over the next three years. This outlook benefits from improved mill head grades and enhanced plant throughput, following the commissioning of a third pebble crusher in late 2023 and planned processing plant upgrades in 2025. The company emphasizes that these gains require minimal growth capital, relying instead on increased material movement rates and operational efficiencies.

The mine plan anticipates continued waste stripping and ore extraction through Stages 5 and 6, with an average strip ratio of approximately 6:1 over the outlook period. This elevated stripping activity is essential to secure consistent ore supply and maintain optimal production levels. The life-of-mine plan extends Gruyere’s open pit operations through to 2032, supported by an Ore Reserve of 77 million tonnes at 1.29 g/t gold, equating to 3.19 million ounces.

Underground Drilling to Extend Mine Life

In a strategic move to extend Gruyere’s operational horizon, Gold Road and its JV partner Gold Fields have commenced a 60,000-metre diamond drilling program targeting depths up to 1,200 metres below surface. This exploration initiative follows a preliminary underground review by SRK Consulting, which suggested the potential for an underground mine that could sustain production well beyond the current open pit reserve life ending in 2032.

The drilling program aims to upgrade the confidence level of the underground resource to Indicated status, focusing on infill drilling within the upper 400 vertical metres of the conceptual underground mining area. The $15 million exploration budget (with $7.5 million attributable to Gold Road) is additional to the AISC and represents a significant investment in the mine’s future.

Strategic Value and Future Optionality

Gruyere has already produced over 1.5 million ounces of gold at an attractive attributable AISC of A$1,610 per ounce since commercial production began in 2019. The operation is on track to surpass 2 million ounces by 2026, triggering an uncapped 1.5% net smelter return royalty payable to Gold Road on Gold Fields’ share of production, enhancing the company’s revenue streams beyond its equity share.

Additionally, Gold Road is advancing the Golden Highway project, with permitting expected to commence in 2025 and mining readiness targeted for 2027. This satellite ore source will complement Gruyere’s feed and provide further flexibility as the mine potentially transitions to underground operations. The company is also progressing its Yamarna Mine Readiness Project, adding further optionality to its portfolio.

Overall, Gold Road’s latest guidance and exploration initiatives underscore a confident outlook for Gruyere, balancing near-term production growth with strategic investments aimed at extending mine life and maximising asset value.