Gold Fields said its 50:50 joint venture with Gold Road Resources, the Gruyere JV, this week achieved its first one million ounces of gold production.
The long-life, low-cost, Tier 1 gold mine is located 1 200km north-east of Perth in Western Australia’s north-east Goldfields region.
Gold Road Resources CEO Duncan Gibbs said: “The Gruyere team has performed safely and sustainably at an impressive rate that has seen this milestone achieved in line with annual guidance.”
Gold Fields Australia vice-president Stuart Mathews said: “We are proud of the team on reaching this milestone and on the delivery of projects like the Gruyere solar farm that was launched in 2022 and supports our global decarbonisation objectives.
“The solar component of Gruyere’s hybrid microgrid accounts for about 10% of the operation’s electricity consumption. We are all excited about the opportunities this microgrid offers to explore options to increase renewable energy generation at the site.”
Gold Road also announced a three-year outlook for Gruyere in a release to the Australian Stock Exchange. It is estimated that the project could produce between 335 000 ounces per year and 375 000 ounces per year over the outlook period.
The group reported that production expectations at Gruyere had been lifted owing to higher head grades and improved throughput, following the commissioning of a third pebble crusher in late 2023.
Enhancements to production have been driven by continuous improvement and required little additional sustaining capital expenditure and negligible growth capital expenditure, it said.
“The production outlook requires minimal growth capital. AISC (all in sustaining costs) outlook continues to offer strong margins at current spot gold prices,” it said.
The group said the Gruyere JV completed feasibility-level studies on the seven-stage Gruyere pit design, including metallurgical and geotechnical studies that underpin the Life-of-Mine until 2032. It anticipates that production will reach 350 000 tonnes in this period.
The group said with more than three million ounces of mineral resources defined beneath the Gruyere ore reserve and the ore body intersected in drilling down to 1km below the surface, it sees an opportunity to extend Gruyere’s mine life beyond 2032. This will be the subject of a study in the future.
The joint venture’s exploration focus this year will be on the Golden Highway project, 25km from the Gruyere mine site, which is estimated to host 14 million tonnes at 1.44 g/t gold for 0.67 million ounces of gold.
Feasibility studies for the Golden Highway resource are expected this year, in preparation for mining which is expected to start in early 2026.
“Additionally, the Gruyere JV is at an advanced stage of tendering a mining contract, with several industry-leading contractors submitting competitive bids,” the group said.
BUSINESS REPORT