Midtier gold producer and explorer Gold Road Resources has unveiled the findings of a prefeasibility study (PFS) for its 100%-owned Gilmour gold project, located in the Yamarna belt, about 1 000 km north-east of Perth. The company also announced a maiden ore reserve for the deposit.

The Gilmour project is situated 60 km south-west of the Gruyere process plant, owned by the Gruyere joint venture (JV), in which Gold Road holds a 50% stake. The PFS models the haulage of ore from Gilmour using existing and new roads for processing at Gruyere.

The PFS outlines robust economic potential for the Gilmour project. It presents an after-tax net present value of A$231-million at a flat gold price of A$3 500/oz, which increases to A$354-million at a flat gold price of A$4 300/oz. Pre-tax free cash flow is estimated at A$377-million at A$3 500/oz and A$569-million at A$4 300/oz.

The mine is expected to operate for five years, producing an average of 50 300 oz/y at an all-in sustaining cost of A$2 004/oz. Life-of-mine production is estimated at 250 000 oz at an average grade of 3.9 g/t gold.

The project includes a high-grade underground mine component that is expected to produce 200 000 oz over a four-year mine life. This includes a high-grade segment of 100 000 oz at 9.34 g/t gold and a lower-grade segment of 100 000 oz at 3.89 g/t gold.

The PFS estimates capital at A$36-million, covering site infrastructure and haul roads. No additional growth capital is expected beyond the all-in sustaining costs and the initial establishment capital.

Gold Road says the project is on schedule to be shovel-ready by late 2026, with the production schedule aligned to the Gruyere JV’s ore processing timetable.

As of December 31, the maiden Gilmour ore reserve stands at 1.5-million tonnes at 4.10 g/t gold, containing 190 000 oz. This includes underground reserves of 600 000 t at 6.6 g/t for 130 000 oz and openpit reserves of 800 000 t at 2.2 g/t for 60 000 oz.

The Gilmour orebody remains open at depth, and further drilling is planned for 2025.

Gold Road MD Duncan Gibbs described the PFS results as a significant milestone. “This is a significant outcome for shareholders and a pleasing return on our ongoing exploration efforts at our 100%-owned Yamarna project,” Gibbs said. “Gold Road has a history of delivering value to shareholders, and we remain focused on making further discoveries across our Australian portfolio.”

With the PFS indicating a promising path forward, Gold Road is poised to advance Gilmour as part of its broader growth strategy in the Yamarna belt.