Image source: Shutterstock

Highlights

  • Gold Road Resources shares gain 2% after completing a key underground exploration target review

  • Study outlines potential sub-level cave mining with production sustainability at AU$2,240/oz

  • JV commits $26.4 million to a 60,000m drilling campaign at Gruyere through mid-2026

Gold Road Resources Ltd (ASX:GOR) shares climbed 2.0% on Tuesday, trading at AU$3.00 apiece, after the company announced the completion of a major underground exploration target review at its flagship Gruyere Gold Mine in Western Australia.

The Gruyere project is a 50:50 joint venture between Gold Road and Gold Fields, with the latter managing and operating the mine. The underground exploration target estimate was derived from a scoping study conducted by SRK Consulting, which outlined a promising pathway for underground development.

According to Gold Road, the study has identified a sub-level cave mining option, with economic modelling based on a gold price of AU$2,240 per ounce. The underground mining approach is projected to sustain production at scale, supporting the long-term future of the Gruyere operation.

The scoping study estimates initial infrastructure capital costs of AU$470 million, with total infrastructure capital reaching AU$588 million (based on 100% of the project). This indicates a significant potential investment in expanding the mine’s capacity through underground development.

Following the review, Gold Road said it now has adequate data to define a formal exploration target estimate. On a 50% basis, the estimate ranges between 25 and 31 million tonnes, grading between 1.20 and 1.47 grams per tonne of gold (g/t Au). This equates to an expected 1.0 to 1.5 million ounces of gold.

However, the company was quick to note that this remains an exploration target only, and no guarantee exists that further drilling will convert this estimate into a Mineral Resource.

In a show of commitment to unlocking this underground potential, the Gruyere Joint Venture has approved a $26.4 million drilling campaign, aiming to complete 60,000 metres of drilling by mid-2026. The extensive program will provide critical data to further refine the underground model and assess its feasibility.

The positive market response on Tuesday reflects investor optimism around Gruyere’s long-term potential and the company’s proactive development strategy. While risks remain around resource conversion and future funding, the latest study suggests that Gruyere could evolve into a deeper, multi-decade operation should underground mining proceed.

Gold Road continues to position itself as a key player in Australia’s gold sector, with Gruyere producing over 300,000 ounces annually and holding a strategic location within the Yamarna Greenstone Belt—one of Western Australia's underexplored gold frontiers.