Gold Road Resources revealed that its fully owned Gilmour gold project in Western Australia will require an establishment capital expenditure (capex) of A$36m ($22.41m), based on the findings of a pre-feasibility study (PFS).
The capex includes site infrastructure and haul roads, royalties, sustaining capital, and a 25% contingency.
Ore from the gold project is expected to be hauled 60km by road to the Gruyere process plant, owned by the Gruyere joint venture (GJV), in which Gold Road has a 50% stake.
The PFS outlines a mine life of five years, with total production estimated at 0.25 million ounces of gold from underground and open pit. Annual gold production is expected to average 50,300 ounces.
The underground mine component is projected to produce 200,000 ounces over four years. The orebody remains open at depth, with drilling planned for 2025 to further explore and extend the resource.
According to the PFS, the Gilmour gold project has an after-tax net present value (NPV) of A$231m ($143.79m). The project is also expected to generate pre-tax free cash flow of A$377m ($234.6m)
Gold Road CEO and managing director Duncan Gibbs said: “This is a significant outcome for shareholders and a pleasing return on our ongoing exploration efforts at our 100% owned Yamarna Project.
“Gold Road has a history of delivering value to shareholders and we remain focused on making further discoveries across our Australian portfolio.”
Located around 60km southwest of the Gruyere process plant, the Gilmour gold project is designed to leverage existing and new roads for ore haulage.
The Western Australian gold project is estimated to have no additional growth capital required beyond the initial establishment capex.
Gold Road is advancing towards a final investment decision (FID) for the Gilmour project, with the next steps involving the completion of native title agreements, permitting, and finalisation of environmental and mining approvals.
The company is also working on upgrading the PFS to a feasibility study (FS), which will include refined capital expenditure estimates, contractor submissions, and further geotechnical assessments.
Construction is slated to begin in late 2026, aligning initial production with the Gruyere JV’s ore processing schedule.
Gold Road expects to submit environmental and mining approval documentation to the Environmental Protection Authority (EPA) and the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) in 2025.
