Production at the Gruyere gold mine east of Laverton has rebounded in the September quarter, with a record 88,668 ounces churned out.
Gold Road Resources, which owns the mine in a 50:50 joint venture with South African giant Gold Fields, told the ASX on Thursday the gold had been produced at an all-in-sustaining cost of $1682/oz.
This was an improvement on the June quarter, when 76,053oz had been produced at an AISC of $1620/oz.
Gold Road said production benefited from a drawdown of gold-in-circuit from gold recovered but not poured during the prior quarter.
The company said despite an improvement in the rate of ore mining from the Gruyere pit, production continued to be supplemented by the processing of low-grade ore stockpiles, which included blending with oxide material to support higher plant throughput.
Gold Road said total material movement increased quarter-on-quarter following much improved drill and blast performance, supported by the mobilisation of new drilling equipment, additional mining fleet and associated mining personnel.
The company said the total material movement was 8.8 million tonnes, of which ore mining totalled 2.2Mt during the quarter, with the average grade of ore mined being 1.22 grams per tonne.
Gold Road said it expected this to continue to lift through the December quarter and into next year, with an additional 600t-class excavator and four 240t trucks being commissioned during the quarter.
A total fleet of three primary excavators and 16 240t trucks were now in operation, with more trucks to be mobilised this quarter and next.
Gold Road said it had record free cash flow of $51.7m for the quarter, up from $30.4m in the June quarter, with sales during the quarter totalling 44,321oz at an average price of $2946/oz.
Operating cash flow from Gruyere during the quarter was $93.5 million, up from $68.3m in June.
Gold dore and bullion on hand at September 30 was 1736oz, while cash and equivalents rose to $209.3m from $157.2m in the June quarter.
The company’s market capitalisation at September 30 was $345.1m.
The company said its 2023-24 production guidance was unchanged at 320,000oz-350,000oz at an AISC of $1540/oz-$1660/oz.