Gold Road Resources Limited (ASX: GOR)
Gold Road Resources Limited (ASX: GOR) reported a strong performance in the September 2024 quarter results, with Gruyere gold production reaching 68,781 ounces (100% basis) at AISC of A$2,551 per attributable ounce. This is more than the companys previous quarter where its production was at 62,535 ounces at an AISC of A$2,441. The company’s gold sales for the quarter rose to 32,507 ounces at an average price of A$3,719 per ounce, while its operating cash flow from Gruyere grew to $88.7 million. Free cash flow also improved to $19.8 million, a significant turnaround from a net outflow in the prior quarter. As of September 30, 2024, Gold Road's cash and equivalents were up to $109.2 million.
In the September quarter, Gruyere achieved a record 14.2 million tonnes of material moved, driven by higher mining productivity. The mined ore tonnes increased to 1.8 Mt at a grade of 1.29 g/t Au, with grades improving to over 1.4 g/t Au by quarter-end. The processing plant treated 2.3 million tonnes of ore, with a head grade of 1.05 g/t Au and a recovery rate of 91.4%. These factors contributed to a steady increase in gold production. Although the ore head grade was lower than the mined grade due to the blending of stockpiled material, the proportion of higher-grade ore delivered to the plant is expected to increase in the coming quarters, which will support further production growth. By the end of September, 7,599 ounces were held as unsold bullion and dore, contributing to the slightly higher-than-expected production figures.
Gold Road made significant strides with drilling activities at its Mallina and Greenvale projects, and plans to continue drilling at the Balter and Yamarna sites in the December quarter. The company’s Yamarna Mine Readiness Project remains on track, with environmental and technical studies progressing as planned. The project, which aims to advance the company's Yamarna assets toward production, is expected to deliver a Resource and Reserve update, along with permitting applications in 2025. Additionally, drilling beneath the Gruyere ore reserve has shown encouraging results, suggesting the potential to extend the mine's life beyond 2032. Gold Road's continued focus on exploration and resource development strengthens its prospects for sustained growth and long-term production.
Ausgold Limited (ASX: AUC)
Ausgold Limited (ASX: AUC) is making significant strides in advancing the 3.04Moz Katanning Gold Project (KGP), setting the stage for its transition into development under a revitalized leadership team. Key components of the Definitive Feasibility Study (DFS) are progressing, including metallurgical testwork optimization, tailings storage facility (TSF) evaluations, and DFS mining studies led by newly appointed Project Director, Royce McAuslane of Minescope Consulting. The DFS, targeting completion by late Q2 2025, outlines an initial 3.6Mtpa operation, with future scalability to 5-5.5Mtpa.
To further de-risk and expand the project, Ausgold is commencing an extensive 19,000m reverse circulation (RC) drilling campaign in October 2024. This includes a 5,000m infill program focused on the KGP Central Zone to solidify the first 18 months of the mine schedule, alongside 6,000m targeting high-grade zones in the Central Zone and resource extensions at the Southern Zone’s Lukin prospect. Additionally, 8,000m of exploration drilling will target high-priority prospects across Ausgold’s expansive 4,300km² SW Yilgarn tenure. Recent drilling at Nanicup Bridge returned encouraging broad, low-grade intercepts, including 32m @ 0.54g/t Au and 25m @ 0.63g/t Au, highlighting potential for further discoveries. The company also secured two key Mining Leases, advancing land access and permitting processes. Ausgold’s proactive stakeholder engagement and community outreach efforts are gaining traction, ensuring alignment with broader project goals.
With $21.6 million cash on hand at the end of the quarter, Ausgold is well-positioned to fund its ambitious growth initiatives. The expanded team is focused on delivering a high-quality DFS, accelerating permitting, and driving exploration to uncover additional resources in this under-explored region. Management remains committed to building operational capacity and assembling the systems and personnel required to execute its growth strategy. Ausgold’s active pipeline of milestones, from resource expansion to stakeholder engagement and project delivery, reinforces its ambition to establish the Katanning Gold Project as Australia’s next mid-tier gold producer.
Source: Company’s Report
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