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(Kitco News) - Australian gold producer Gold Road Resources (ASX: GOR) reported Thursday that reliability and utilization of the production drills and availability of blasting resources were below expectations for the quarter at Gruyere.
"These factors, together with a recent significant rain event, have negatively impacted ore and waste mining at Gruyere," the company said in a press release.
The situation has resulted in reduced availability of run-of-mine grade ore to the processing plant, with production being supplemented by the processing of low-grade ore stockpiles, it added.
"A recovery plan is currently being developed with Gold Fields and the mining contractor, and will include the mobilization of new drilling equipment, additional blasting resources and an additional mining fleet during the September quarter," Gold Road noted.
Based on anticipated outcomes of the recovery plan, Gold Road is now guiding 2023 annual production at between 320,000 and 350,000 ounces (100% basis) (previously 340,000 to 370,000 ounces).
The company said that lower gold production rate and revisions to total mining movement will impact all-in sustaining cost (AISC) per ounce guidance for the year, adding it will review AISC per ounce guidance with its June 2023 quarterly report.
The Gruyere JV is a 50:50 joint venture between Gold Road Resources and Gruyere Mining Company, a member of the Gold Fields group, which manages and operates the Gruyere gold mine.
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