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Gold Road Resources : Alaric Mineral Resource Doubled

Monday, 24 July 2017
ALARIC MINERAL RESOURCE DOUBLED

ASX Code GOR

Highlights

  • Alaric Open Pit Mineral Resource increased by 102% to 93,500 ounces of gold
  • Mineral Resource of 1.9 million tonnes at 1.51 g/t Au for 93,500 ounces of gold1
  • 2016 and 2017 drilling2,3 incorporated into update
  • Updated modifying factors used 0.45 g/t Au cut‐off and A$1,850 per ounce (previously 0.7 g/t Au cut‐off and A$1,600 per ounce4)
  • Maiden Reserve evaluation planned for completion H2 2017

Gold Road Resources Limited (Gold Road or the Company) is pleased to announce the completion of the updated Alaric Open Pit Mineral Resource (2017 Mineral Resource) estimate in compliance with the 2012 JORC Code. The Alaric Deposit is located on the Gruyere Joint Venture (Gruyere JV or Joint Venture) tenements, a 50:50 Joint Venture with Gold Fields Limited (Gold Fields), and situated approximately 25 kilometres west of the Gruyere Gold Project (Figure 1).

The 2017 Mineral Resource now totals 1,920,900 tonnes at 1.51 g/t Au for 93,500 ounces of gold (Table 1). This represents an addition of 47,200 ounces (+102%) compared to the 2015 Mineral Resource4, with 72% of the 2017 Mineral Resource being classified in the Indicated category. Material previously classified as Measured in the 2015 Mineral Resource has been re‐assigned to Indicated based on the Company's understanding of appropriate drill spacing for the style of mineralisation and the observed variability of mineralisation at short range in the drilling data.

The 2017 Mineral Resource includes new information derived from the 2016 and 2017 diamond and Reverse Circulation (RC) drilling programmes which contributed to the update of the geological interpretation and grade estimation. Modifying factors used in reporting the 2017 Mineral Resource include a lower cut‐off grade consistent with mining cost estimates derived from the Gruyere Feasibility Study (Gruyere FS5), and an increase in the gold price to reflect the changes in gold price since the 2015 Mineral Resource was declared.

ABN 13 109 289 527

COMPANY DIRECTORS

Tim Netscher

Chairman

Ian Murray

Managing Director & CEO

Justin Osborne Executive Director, Exploration & Growth

Sharon Warburton

Non-Executive Director

Carol Marinkovich

Company Secretary

CONTACT DETAILS

Principal & Registered Office Level 2, 26 Colin St

West Perth WA 6005

www.goldroad.com.au perth@goldroad.com.au

T +61 8 9200 1600

F +61 8 9481 6405

Gold Road Executive Director ‐ Exploration & Growth Justin Osborne said: "The increased Alaric Mineral Resource represents another step forward in our understanding and delineation of the deposits along the 14 kilometre mineralised Attila‐Alaric Trend. Since we announced the Gruyere JV in late 2016 we have increased the combined Mineral Resource of Attila and Alaric by 150,400 ounces. Building on our knowledge gained from rigorous interrogation of the Alaric and Attila deposits we can now apply this improved understanding to our exploration programme to build additional resources along the entirety of this prospective and well‐endowed trend. This includes extending our exploration efforts and methods along this system onto our 100% tenement holding on the North Yamarna Project, where we believe the same lithologies and structures extend all the way to our Pacific Dunes‐Corkwood Camp Target over 50 kilometres to the north."

1 Reported on a 100% basis

2 ASX announcement dated 27 June 2017

3 ASX announcement dated 17 October 2016

4 ASX announcement dated 16 September 2015

5 ASX announcement dated 19 October 2016

Figure 1: Location of the Alaric deposit with reference to the Gruyere JV Project infrastructure, Ore Reserves and Mineral Resources shown on a 100% basis. OP = Open Pit UG = Underground Note: Alaric lies just inside the 25 kilometre radius from the Gruyere Process Plant

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Mineral Resource Estimate 2017 Mineral Resource Update

Gold Road has completed an update to the Alaric Open Pit Mineral Resource, in compliance with the 2012 JORC Code. The Alaric Deposit is situated on a granted mining lease held by the Gruyere JV and is covered by the Gruyere and Central Bore Native Title Agreement. The 2017 Mineral Resource is constrained within an A$1,850 per ounce Whittle optimised pit shell and quoted at a 0.45 g/t Au cut‐off.

The 2017 Mineral Resource totals 1,920,900 tonnes at 1.51 g/t Au for a total of 93,500 ounces of gold, which represents a 126% increase in tonnes (1.1 Mt), an 11% decrease in grade, and a 102% increase in gold (47,200 ounces) compared to the 2015 Mineral Resource (Table 1 and Figure 2). A total of 72% of material within the 2017 Mineral Resource optimised pit shell is classified as Indicated. Material previously classified as Measured in the 2015 Mineral Resource has been re‐assigned to Indicated based on the Company's understanding of appropriate drill spacing for the style of mineralisation.

Table 1: Summary comparison of 2015 and 2017 Alaric Mineral Resource variances

Resource Category 2015 Mineral Resource 2017 Mineral Resource Variance %
  Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
  (t) (g/t Au) (oz) (t) (g/t Au) (oz) (t) (g/t Au) (oz)
M, I & I 849,900 1.70 46,300 1,920,900 1.51 93,500 126% ‐11% 102%
Measured 387,300 2.05 25,600 ‐100% ‐100% ‐100%
Indicated 336,900 1.23 13,300 1,236,500 1.70 67,500 267% 38% 408%
Inferred 125,700 1.84 7,400 684,400 1.18 25,900 444% ‐36% 250%

Notes:

  • All Mineral Resources are completed in compliance with the 2012 JORC Code
  • All figures are reported on a 100% ownership basis
  • The 2017 Mineral Resource is reported at a cut‐off grade of 0.45 g/t Au and constrained within a A$1,850 per ounce optimised pit shell
  • The 2015 Mineral Resource is reported at a cut‐off grade of 0.70 g/t Au and constrained within a A$1,600 per ounce optimised pit shell
  • All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding. The 2017 Mineral Resource is based on 238 RC holes for 20,998 metres and six diamond holes for 829 metres for a total of 21,827 metres, drilled since the mid 1980's. This includes four diamond and 11 RC holes completed during 2016 and 2017, which have contributed to an improved understanding of the geology and mineralisation controls at Alaric, and which resulted in the refinement of the mineralisation domains used in this update. Information and operating cost estimates from the Gruyere FS, finalised in 20166, were incorporated in the evaluation to constrain the 2017 Mineral Resource and to demonstrate potential future economics. Changes to the modifying factors used in reporting the 2017 Mineral Resource include:
  • lowering the cut‐off grade from 0.7 g/t Au to 0.45 g/t Au
  • Increasing the evaluation gold price from A$1,600 per ounce to A$1,850 per ounce.

The 2017 Mineral Resource has been constrained and reported within an optimised pit shell based on the updated modifying factors. The revised gold price reflects an increasing Australian gold price and upside on the trading range since the 2015 Mineral Resource was declared.

A combination of changes to the modifying factors, gold price assumptions, and improvements and extensions to the geological model have resulted in a 102% increase in total Mineral Resource ounces in this update.

6 ASX announcement dated 19 October 2016

Figure 2: Alaric longitudinal projection looking west illustrating the 2017 optimised pit shells, current Mineral Resource Category Classification and drilling coloured by full length intersections of the internal high‐grade to the main shear, and selected annotation of main shear and internal high‐grade intersections. Additional drill intersections not illustrated exist on parallel ore surfaces which contribute to driving the constraining pit shells


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