Gold Road Resources Grows with Gilmour Gold Project

About Gold Road Resources

Gold Road Resources (ASX: GOR) is a mid-tier Australian gold producer and explorer with significant assets across Western Australia, South Australia, and Queensland. The company owns a 50% stake in the Gruyere gold mine, a world-class operation developed in joint venture with Gold Fields Ltd. Since its first gold pour in 2019, Gruyere has produced over 1.24 million ounces, with a projected mine life extending to 2032. Gold Road’s focus on operational excellence, pioneering gold discoveries, and strategic growth positions it as a leader in the sector. The company is committed to delivering value to shareholders through strong performance and sustainable practices.

Growth Potential: Positive Pre-Feasibility Study Outcomes

Gold Road Resources is poised to enhance its market position with the ongoing development of its 100%-owned Gilmour Gold Project, situated approximately 60 kilometres from its world-class Gruyere Gold Mine in Western Australia. With a focus on optimising shareholder value through strategic acquisitions, resource expansion, and sustainability, Gold Road is increasingly recognised for its ability to deliver value. The pre-feasibility study (PFS) for the Gilmour Gold Project marks a significant step in the company’s growth strategy, offering strong financial outcomes and a clear path toward advancing the project into full-scale development.

The recently completed pre-feasibility study for the Gilmour Gold Project demonstrates strong financial and operational potential. The project is forecast to generate a post-tax net present value (NPV5%) of A$231 million based on a gold price of A$3,500 per ounce, and up to A$354 million at a gold price of A$4,300 per ounce. With estimated pre-tax free cash flow projections of A$377 million (at A$3,500/oz) and A$569 million (at A$4,300/oz), the Gilmour Project is positioned to be a key driver of the company’s revenue in the coming years.

The Gilmour mine plan envisages an impressive life-of-mine total production of 0.25 million ounces at a low average all-in sustaining cost (AISC) of A$2,004 per ounce. The project’s financial robustness, alongside a strong production profile, highlights its potential to contribute significantly to Gold Road’s growth.

Exploration and Resource Growth: A Rich, High-Grade Orebody

Gold Road’s commitment to exploration is evident in the positive results of the Gilmour Gold Project’s resource development. The orebody at Gilmour remains open at depth, with further drilling planned for 2025 to define additional resources. As of 31 December 2024, the maiden Gilmour Ore Reserve totals 1.5 million tonnes at 4.10 g/t Au, translating to approximately 0.19 million ounces. The orebody features a combination of high-grade underground resources (0.13 million ounces at 6.57 g/t Au) and open-pit reserves (0.06 million ounces at 2.18 g/t Au), with the underground mine expected to produce 0.2 million ounces over its estimated four-year life.

The Gilmour Project has seen a substantial upgrade in resource classification, with the Indicated Mineral Resource increasing by 47% to 200,000 ounces. The exploration efforts have led to an increase in the underground resource, with significant higher-grade ore identified. Additionally, the updated Mineral Resource estimate indicates a 54% increase in grade, reflecting the project’s underlying growth potential.

Operational Excellence: Efficient and Sustainable Mining

The Gilmour Gold Project’s operational model reflects Gold Road’s commitment to efficient mining and processing. The PFS outlines a five-year mine life, with annual gold production averaging 50,300 ounces. The average AISC of A$2,004 per ounce positions the project as one of the lower-cost operations in the sector, benefiting from economies of scale and the toll treatment agreement with the Gruyere JV.

The ore extraction will occur through both open-pit and underground mining methods. The open-pit operation will process 1 million tonnes at a grade of 1.98 g/t Au, while the underground mine will process 1.2 million tonnes at a higher grade of 5.44 g/t Au. The strong recovery rate of 94.5% from the Gruyere processing plant will further boost the project’s profitability.

A key strategic advantage for Gold Road is the proximity of the Gilmour Gold Project to the Gruyere processing plant, where the ore will be toll-treated. This synergetic arrangement allows Gold Road to leverage existing infrastructure and the Gruyere Joint Venture (JV) to maximise the Gilmour Project’s cost efficiency. The establishment capital for Gilmour is estimated at A$36 million, and with no additional growth capital outside of AISC and initial capital, this makes the project highly capital-efficient.

Moreover, the Gilmour Gold Project is just the beginning of Gold Road’s broader ambitions within the Yamarna Project area, which covers over 14,000 square kilometres in Western Australia. The Yamarna Mine Readiness Project includes the evaluation of additional resources such as Renegade, Smokebush, and Warbler, with late-stage exploration targets slated for 2025. Gold Road’s ability to integrate new discoveries within this portfolio will further enhance its long-term growth trajectory.