- Gold Road Resources (GOR) says production for 2021 will be lower than expected following several disruptions at its Gruyere Gold Mine
- The disruptions were due to infrastructure and equipment failures at the processing plant and subsequent shutdowns
- Overall production for 2021 is expected to be in the lower half of the company’s estimates of between 260,000 and 300,000 ounces
- All-in sustaining costs per ounce for both the June quarter and the full year are also expected to be higher
- Shares in Gold Road Resources are down 8.45 per cent to $1.30 at 11:00 am AEST
Gold Road Resources (GOR) says production for 2021 will be at the lower end of its guidance following several disruptions at its Gruyere Gold Mine.
For the June quarter, total output is expected to be between 52,000 and 55,000 ounces. That compares to 66,213 ounces of gold produced in the March quarter and 70,794 ounces in the December period.
According to an announcement this morning, the disruptions were due to a torn mill feed conveyor belt at Gruyere, which lead to a drop in processing rates while replacement parts were secured and repairs made.
That was then followed by an issue with a coupling on the ball mill, leaving processing to continue with only the semi-autogenous grinding (SAG) mill in operation.
Final repairs to the ball mill were made on Friday last week, and processing operations returned to normal over the weekend.
“The root cause of the coupling failure is under engineering investigation, with the objective of preventing potential future failures,” Gold Road said this morning.
The company has also flagged an increase in all-in sustaining costs (AISC) for the June quarter, with estimates currently at around $1675 to $1800 per ounce, compared to between $1225 and $1350 per ounce that was forecast in February.
Overall production for 2021 is now expected to be in the lower half of Gold Road’s estimates of between 260,000 and 300,000 ounces. AISC for the remainder of the year are also expected to be between $1325 and $1475 per ounce.
Shares in Gold Road Resources are down 8.45 per cent to $1.30 at 11:00 am AEST.