The WA Department of Mines & Petroleum approved the project management plan, mining proposal and mine closure plans provided by the joint venture, allowing for construction of the process plant and associated infrastructure to proceed.
The JV can also start work on the Gruyere open pit mine, located 200km east of Laverton in Western Australia, with the partners planning this quarter to award major contracts including the engineering and procurement contract for its process plant and associated infrastructure.
The $A507 million Gruyere project will be developed in a single open pit, expected to produce an average of 270,000 ounces of gold per annum over a 13-year mine life.
Gold Fields agreed to pay $350 million for a 50% stake in the project last November.
Gold Road managing director Ian Murray said the approvals were another important milestone in the project’s development pathway.
“The JV project team remains focused on the commencement of construction of the process plant and infrastructure in the March 2017 quarter, with contracts expected to be awarded soon to allow progress to continue to plan,” he said.
The JV is currently installing the first 300 rooms of an accommodation village for the project after receiving environmental approval in January.
Shares in Gold Road were down A0.5c or 0.9% to 57.5c in morning trade, valuing the company at $500.9 million.
