Torn conveyor belt at Gruyere impacts Gold Road’s 2021 guidance
Editor's Note: Don't miss Kitco's LIVE interview with Gareth Soloway, chief market strategist of InTheMoneyStocks.com, on Tuesday, June 29, at 4:00 pm EST, to be hosted by anchor David Lin. Comments and questions will be taken.
(Kitco News) - Gold Road Resources reported today that due to disruptions to processing plant operations at the Gruyere gold mine in Australia, production at Gruyere for the June 2021 quarter will be approximately 52,000 to 55,000 ounces (100% basis).
The company said that the disruptions to Gruyere’s processing plant operations included a torn mill feed conveyor belt, which resulted in temporary repairs and reduced processing rates while specialist personnel and materials for the belt replacement were obtained.
Following the shutdown of the milling circuit to replace the conveyor belt, a coupling on the ball mill failed. As a result, processing continued at a reduced rate, with only the SAG mill in operation, Gold Road added.
Meanwhile, repairs to the ball mill were completed late on Friday, 25 June 2021, with the processing plant returning to normal operations over the weekend. The root cause of the coupling failure is under engineering investigation, with the objective of preventing potential future failures, the company pointed out.
At this stage, Gold Road anticipates gold production for the 2021 calendar year will be within the lower half of guidance (260,000 to 300,000 ounces on a 100% basis). All-in sustaining costs for the 2021 calendar year are anticipated to be between $1,325 and $1,475 per attributable ounce, with lower June 2021 quarter production and higher maintenance and labour costs the main contributors to an increase from guidance of between A$1,225 – A$1,350.