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- Gold Road Resources (GOR) is downgrading its full-year production guidance, after a mechanical failure interrupted operations at the Gruyere gold mine
- Following a planned maintenance shutdown, a ball mill motor bearing failed during start-up, sending the site back into a seven-day extended suspension, with operations eventually recommencing on September 24
- As a result Gold Road no longer expects to reach its 285,000-ounce production target, and has lowered its full-year guidance to between 250,000 and 270,000 gold ounces
- The drop in production has also impacted the site’s annual all in sustaining costs guidance, which rose to between $1,250 and $1,350 from $1,150 to $1,250
- Gold Road Resources closed 6.41 per cent in the red for $1.46 per share
Gold Road Resources (GOR) is downgrading its full-year production guidance, after a mechanical failure interrupted operations at the Gruyere gold mine.
Located in the West Australian Goldfields, the mine is operated at a joint venture, with Gold Road Resources and the Gruyere Mining Company each holding a 50 per cent stake.
During an operational ramp-up at the site, following a planned maintenance shutdown, a ball mill motor bearing failed, sending operations back into hibernation, 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.
Due to the seven-day extended shutdown as well as other operational disruptions this month, Gold Road 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.
The drop in production has also impacted the site’s annual all in sustaining costs guidance, which rose to between $1,250 and $1,350 from $1,150 to $1,250.
While the operational shutdown contributed to the rise in costs, Gold Road also noted that the site’s transition to fresh rock processing also impacted the figures.
This latest disruption comes after a difficult week so far for Gold Road shares, which have already dropped 13 per cent since trading began on Monday.
Gold Road Resources closed 6.41 per cent in the red for $1.46 per share.
