AUSTRALIA’S biggest new gold mine, Gruyere, has hit commercial production ahead of schedule, with annual guidance for gold production predicted to be at the upper end on 75,000-100,000oz.
The JV between WA company Gold Roads (ASX: GOR) and South African giant Gold Fields has been ramping up to be slightly ahead of the deadline since the ball mill was commissioned in early August.
The $621m Gruyere mine, 200km north-east of Laverton, was Australia’s last major gold discovery since 2013, and took the JV just six years to reach commercial production.
Commercial production was defined by the predetermined rate of 70pc throughput of nameplate capacity at a minimum average gold recovery rate of 85pc of expected mine metallurgical recovery.
The company has forecast an AISC of $1050/oz to $1150 as the mine ramps up to nameplate capacity, slightly higher than the predicted $1025 life-of-mine average.
Once this is reached, Gruyere is forecast for an average 300,000oz/year for a 12-year-life-of-mine.
Operating company Gold Roads announced in June that Gruyere poured its first bars in June 2019 using carbon-in-leach and elution circuits before commissioning the ball mill and gravity gold recovery circuit.
The cost of the mine was originally estimated at $507m, but blew out twice due to weather-related delays and scope changes by both JV partners.
