Mining and processing operations have resumed at the 50:50 Gold Road and Goldfields-owned Gruyere gold mine in Western Australia's Eastern Goldfields after trucks bearing supplies finally reached the site.
Repairs to the Great Central Road, Gruyere's main supply route from the west, are still being conducted.
The supply chains changes to resume operations required a round trip from Perth of more than 9200km or sourcing alternative suppliers from the east.
The consumables were transported via the Northern Territory and Warburton to the east of Gruyere
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.Gruyere has been cut off since mid-March when unseasonal rains cut roads in the region.
About 140mm fell during the month.
Gruyere's mining contractor MACA, these days part of Thiess, managed to recruit labour to support the ongoing expansion of mining rates at Gruyere.
That lack of labour was a sore point with Gold Road managing director and chief executive officer Duncan Gibbs earlier this year.
Rain effect
Not surprisingly, Gruyere production was cruelled by the extended road closures.
The rain events resulted in total material movement decreasing quarter on quarter to 8.6 million tonnes, of which ore mining totalled 1Mt during the quarter.
The mine managed to produce 64,323 ounces of gold at an all-in sustaining cost of $2194 per ounce during the March quarter. In the December quarter it turned out 74,659oz at an AISC of $1973/oz.
With the puddles starting to dry 2024 annual guidance is expected to be in the lower half of the 330,000-335,000oz range and towards the upper end of the AISC of $1900-$2050/oz.
Because the effects of the rain event strayed into April, Gold Road believes June production will be lower too.
Mining rates had been at desired rates during February and early March. Then the rain came.
Production is expected to ramp-up through the year with stronger production performance anticipated for the second half.
Total material movement should lift through 2024, with total movement for the year of about 60Mt targeted.
A recovery plan is being implemented to address the mining shortfall from late 2023 and the rain-affected March quarter.
Ore processed during the quarter dropped to 1.9Mt with a head grade of 1.09g per tonne gold. During the December quarter it had been 5Mt at 0.73gpt, reflecting the increased processing of stockpile material during rain interruptions.
