Microsoft Word - Gruyere Mineral Resource Update - April 2016.docx
ASX Announcement
22 April 2016
GRUYERE RESOURCE INCREASES TO
6.2 MILLION OUNCES
INCLUDING 0.5 MILLION OUNCES MEASURED
Highlights
Gold Road Resources Limited ("Gold Road" or the "Company") is pleased to announce completion of the latest update of the Gruyere Mineral Resource estimate in accordance with the 2012 JORC Code. The Gruyere Gold Project, situated 200 kilometres east of Laverton in Western Australia (Figure 1), now hosts a Mineral Resource totalling 147.7 million tonnes at 1.30 g/t Au for a total of 6.16 million ounces of gold, including 13.86 million tonnes at 1.18 g/t Au for a total of 0.53 million ounces of gold in the Measured category (9% of the total resource metal).
Gold Road Executive Director, Justin Osborne said: "After completing a detailed infill drilling programme in late 2015, equivalent to grade control drilling in its spacing, we now have a greater understanding of the top 100 metres of the geology and mineralisation of the Gruyere Deposit. This next iteration of the Gruyere Mineral Resource now includes a significant quantity of Measured Resource which has been upgraded from previously classified Indicated Resource with no material change in the contained tonnes, grade or ounces. This gives us a tremendous level of confidence to take into the Feasibility Study, and future mining operations, that the resource model itself provides a very good predictor of the Gruyere mineralisation. The geological team have once again delivered an outstanding result and continue to improve on our significant knowledge of the Gruyere Deposit in readiness for future Project developments."
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Figure 1: Location and Geology of Yamarna Belt (plan view MGA Grid) showing Gold Road's 100% tenements (blue outline) and
Gold Road‐Sumitomo South Yamarna Joint Venture tenements (red outline), Mineral Resources, Ore Reserves and main Exploration Projects.
Mineral Resource Update
Gold Road has completed an update to the Mineral Resource at its 100% owned Gruyere Gold Project in accordance both with the 2012 JORC Code and with commonly accepted best practice for gold resource evaluation1. The updated Mineral Resource now totals 147.71 million tonnes at 1.30 g/t Au for a total of 6.16 million ounces of gold, which represents a 15% increase in tonnes, a 5% decrease in grade and a 10% increase in metal compared to the previous Mineral Resource (Tables 1 and 2). The updated Mineral Resource includes 13.86 million tonnes at 1.18 g/t Au for 0.53 million ounces in the Measured resource category, which represents 9% of the total resource metal, and is located in the upper 100 metres of the deposit (Figure 2) which would be available during the early years of mine development.
The Central Bore and Attila Trend Mineral Resources remain unchanged from the September 2015 Mineral Resource estimate.
Table 1: Mineral Resource tabulation for the Yamarna Leases - April 2016
|
Project Name (cut‐off grade)
|
Tonnes (Mt)
|
Grade (g/t Au)
|
Contained Metal (Moz Au)
|
|
Gruyere (0.5 g/t Au)
|
147.71
|
1.30
|
6.16
|
% Total Gold Road Resource
|
93%
|
|
Measured
|
13.86
|
1.18
|
0.53
|
% M
|
9%
|
|
Indicated
|
91.12
|
1.29
|
3.79
|
% I
|
61%
|
|
Measured and Indicated
|
104.98
|
1.28
|
4.31
|
% M and I
|
70%
|
|
Inferred
|
42.73
|
1.35
|
1.85
|
|
Central Bore (1.0 g/t Au)
|
0.63
|
9.0
|
0.18
|
% Total Gold Road Resource
|
3%
|
|
Measured
|
0.04
|
26.5
|
0.04
|
% M
|
20%
|
|
Indicated
|
0.40
|
9.0
|
0.12
|
% I
|
63%
|
|
Measured and Indicated
|
0.44
|
10.71
|
0.15
|
% M and I
|
83%
|
|
Inferred
|
0.19
|
5.0
|
0.03
|
|
Attila Trend (0.7 g/t Au)
|
5.30
|
1.59
|
0.27
|
% Total Gold Road Resource
|
4%
|
|
Measured
|
0.66
|
1.96
|
0.04
|
% M
|
15%
|
|
Indicated
|
3.85
|
1.52
|
0.19
|
% I
|
70%
|
|
Measured and Indicated
|
4.51
|
1.59
|
0.23
|
% M and I
|
85%
|
|
Inferred
|
0.79
|
1.59
|
0.04
|
|
Total
|
153.64
|
1.34
|
6.61
|
|
Measured
|
14.57
|
1.29
|
0.60
|
% M
|
9%
|
|
Indicated
|
95.37
|
1.33
|
4.09
|
% I
|
62%
|
|
Measured and Indicated
|
109.94
|
1.33
|
4.70
|
% M and I
|
71%
|
|
Inferred
|
43.7
|
1.37
|
1.92
|
Notes:
Gruyere Mineral Resource reported at 0.5 g/t Au cut‐off, constrained within a A$1,700/oz Au optimised pit shell based on mining and processing parameters from the PFS (ASX announcement dated 8 February 2016), and geotechnical parameters consistent with the previous Mineral Resource estimate (ASX announcement dated 16 September 2015).
Central Bore Mineral Resource reported at 1.0 g/t Au cut‐off (2014 Annual Report).
Attila Trend (Attila and Alaric) Mineral Resource reported at 0.7 g/t Au cut‐off, constrained within a A$1,600/oz Au optimised pit shell (ASX announcement dated 16 September 2015).
All Mineral Resources are completed in accordance with the 2012 JORC Code.
All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.
1 Optiro review and endorsement letter Appendix 3.
The updated Mineral Resource is based on 357 RC holes for 41,264 metres and 113 Diamond holes (Figures 2 and
3) for 31,109 metres (including 14,694 metres of RC pre‐collars) for a total of 87,066 metres drilled since the discovery in October 2013 (ASX announcement dated 14 October 2013). The Gruyere drilling includes an additional 150 grade control equivalent RC holes (14,837 metres) and two Diamond holes (673 metres) completed since the previous Mineral Resource estimate (September 2015), which has contributed to a greater understanding of the geological and mineralisation controls critical to the Mineral Resource estimate.
The major changes to the evaluation parameters used in reporting the Mineral Resource include lowering the cut‐ off grade to 0.5 g/t Au compared to the previous 0.7 g/t Au cut‐off. This is a result of the detailed calculation of potential mining cut‐off grade economics determined as part of the Gruyere Pre‐Feasibility Study (PFS) completed post the previous Mineral Resource announcement. This also aligns the Mineral Resource cut‐off grade with the reported Ore Reserve (ASX announcement dated 8 February 2016).
The updated Mineral Resource has also been constrained and reported at an increased gold price of A$1,700 per ounce gold, compared to the previous A$1,600 per ounce gold, which reflects an increasing Australian gold price and the Company's view of potential future pricing. The combination of lower cut‐off grade and increased gold price are the major contributors to the 10% increase in overall Mineral Resource ounces in this update.