Microsoft Word - 160721 June Quarterly Report.docx
ASX Announcement
25 July 2016
Quarterly Report
For the period ending 30 June 2016
Highlights
Gruyere Gold Project Feasibility Study and approvals process on schedule
-
Feasibility Study remains on schedule for completion in December 2016 quarter
-
Historic native title agreement signed with Yilka People
-
Mining leases granted for Gruyere, Central Bore and Attila deposits
-
Environmental Protection Authority of Western Australia environmental assessment commenced
Encouraging results continue from Regional Exploration Program
-
Initial Diamond drilling programme at YAM14 prospect intersects high‐grade primary gold mineralisation
-
Initial Diamond drilling programme at Pacific Dunes‐Corkwood (Corkwood) Camp Scale Target confirms gold mineralisation at two prospects
-
Initial bedrock drilling at Sun River‐Wanderrie (Wanderrie) Camp Scale Target confirms gold mineralisation in at least four prospects
-
Aircore drilling extends Supergroup Anomaly at Wanderrie a further six kilometres to the south
-
RC drilling at Toppin Hill and Yaffler prospects on South Yamarna Joint Venture (SYJV) intersects gold mineralisation over widespread areas
ASX Code GOR
ABN 13 109 289 527
COMPANY DIRECTORS
Tim Netscher
Non-Executive Chairman
Ian Murray
Managing Director and CEO
Justin Osborne
Executive Director
Martin Pyle
Non-Executive Director
Sharon Warburton
Non-Executive Director
Kevin Hart
Company Secretary
CONTACT DETAILS
Principal & Registered Office Level 2, 26 Colin Street
West Perth WA 6005
www.goldroad.com.au [email protected]
T +61 8 9200 1600
F +61 8 9481 6405
A$74 million capital raising successfully completed
-
Institutional share placement and entitlement offer undertaken at a price of A$0.44 per share
-
Three additional respected North American institutions join share register after cornerstoning the placement
-
Use of proceeds to include deposits to secure the purchase of long lead‐time capital items for the Gruyere Gold Project and commencement of early works and FEED
Board and management changes reflect Company transition from explorer to developer
-
Tim Netscher appointed Non‐Executive Chairman
-
Incumbent Chairman Ian Murray appointed Managing Director and Chief Executive Officer
-
Tim Manners appointed General Manager - Finance
-
Justin Osborne Executive Director - Exploration & Growth
EXPLORATION and DEVELOPMENT
Dorothy Hills Project (Gold Road 100%)
Gruyere Gold Project
During the quarter, Gold Road continued work on the Feasibility Study for the development of its 6.2 million ounce (Moz) Gruyere Gold Project, located approximately 200 kilometres east of Laverton in Western Australia. The study remains on schedule for completion by the end of the 2016 calendar year.
GR Engineering and AMC Consultants, lead engineers for the process plant/ infrastructure and the mine planning respectively, made excellent progress with their resepective study components which are expected to be completed in the September 2016 quarter. Geotechnical modelling of parameters for the open pit mine design has been completed and is undergoing third party independent peer review. The review of feasibility work by the Owner's Team and peers will continue into the December 2016 quarter.
In early May, Gold Road signed a historic native title mining agreement for Gruyere and the nearby Central Bore gold project with the Yilka People and the Cosmo Newberry Aboriginal Corporation. The agreement was the first mining agreement entered into by the Yilka People, and the first native title mining agreement across the Yamarna Belt.
Settlement of the native title agreement enabled Gold Road to submit the State Deed for the mining leases for Gruyere, Central Bore and another satellite deposit, Attila, the leases were granted by the WA Government promptly thereafter. Gold Road now holds mining leases for all three JORC‐compliant gold resources it has discovered on the Yamarna Belt. Central Bore and Attila were not included in the Gruyere Pre‐Feasibility Study nor are they being factored into the current Feasibility Study, and offer the potential to subsequently improve the economics and extend the life of the Gruyere Gold Project with further technical work.
Subsequent to receipt of the mining leases, the Environmental Protection Authority of Western Australia advised Gold Road it had published its level of assessment decision on the Gruyere Gold Project and would assess the project as Assessment on Proponent Information (API) Category A. Submission of the final API document is planned for the September 2016 quarter and the Company anticipates that the EPA will complete its review and submit its assessment report to the WA Environment Minister in December 2016 quarter.
In parallel to the Feasibility Study and approvals processes, Gold Road commenced early works project execution planning for engineering and contracting strategies during the quarter.
North Yamarna Project (Gold Road 100%)
South Dorothy Hills Camp Scale Target (Camp #1)
An initial programme of Diamond drilling completed at the YAM14 prospect, approximately nine kilometres south of the Gruyere deposit, intersected high‐grade primary gold mineralisation in a discrete shear zone below previous Reverse Circulation (RC) drilling (Figures 1 and 2). The best intercept from the three‐hole programme contained visible gold and returned 3.05 metres at 4.89 g/t Au from a depth of 137.68 metres. Gold mineralisation extends over a strike length of 850 metres and remains open to the north and south, and at depth.
Limited drilling has been undertaken at YAM14 since it was identified as part of the same programme that discovered Gruyere in October 2013. The recognition of a well developed and discrete mineralised shear zone, and the proximity to Gruyere has now pushed it up the priority list. Review of 2014 drill data collected over the Toto Prospect area approximately one kilometre to the north of YAM14 also identified significant gold and arsenic anomalism that aligns with the projected strike of the interpreted YAM14 shear zone. A programme of additional RC and Diamond drilling is planned to define the structural regime and mineralisation controls and to scope the size potential of the prospect.
Figure 1: YAM14 cross section displaying location of 16DHDD0002 shear‐hosted bedrock intersection.
Figure 2: YAM14 Longitudinal Projection displaying location of 16DHDD0002 in potential north plunging shoot, and supergene mineralisation defined in previous drilling
Sun River‐Wanderrie Camp Scale Target (Camp #4)
Targeted bedrock drilling focused on the high priority Supergroup Anomaly targets which confirmed gold mineralisation in at least four prospects (Figure 3). The best intercept was returned from Diamond hole 16TADD002 drilled at the Santana prospect with 1.97 metres at 6.50 g/t Au from a depth of 181 metres within a broader zone of gold anomalism of 21.35 metres at 0.75 g/t Au from 180 metres. Diamond hole 16WDDD0002, testing aircore anomalism at the Vai prospect, intersected 1.0 metre at 2.16 g/t Au from 128 metres in a shear zone, almost 700 metres east of the main Supergroup trend.
In total, the drilling programme comprised six widely spaced Diamond holes and 13 RC holes specifically targeting bedrock gold mineralisation associated with discrete aircore anomalies (prospects) forming the six kilometre‐ long Supergroup Anomaly. Gold mineralisation in excess of 0.5 g/t Au was identified in 11 of the 19 holes drilled, which is considered a successful first pass test. Follow‐up drilling is planned to test the dip and strike extensions of intersected mineralisation and will initially focus on the Satriani, Santana, Blackmore and Vai prospects.
A 7,525 metre aircore drilling programme extended the Supergroup anomaly by almost six kilometres to the south (Figure 4). The programme, drilled on 800 metres spaced lines (north‐south) with holes spaced 100 metres apart on lines, identified consistent and coherent gold anomalism at the conceptual Gilmour and Morello Targets (Figure 5).
Best aircore intercepts include:
-
16 metres at 0.41 g/t Au from 68 metres, including 4 metres at 1.0 g/t Au from 68 metres (16WDAC0162)
-
8 metres at 0.42 g/t Au from 48 metres (16WDAC0148)
-
4 metres at 0.77 g/t Au from 44 metres (16WDAC0197)