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Growth Portfolio: Gold Road Resources Ltd (ASX: GOR)


Published 29-MAY-2015 00:00 A.M.


2 minute read

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Overview: Gold Road Resources Ltd ("Gold Road", "the Company") is an Australian minerals company focused on gold exploration in Western Australia. Its primary asset the Gruyere Project near Laverton, where Measured, Indicated and Inferred Resources have been delineated totalling 137Million tonnes (Mt) grading 1.24g/t for 5.5million oz. A Scoping Study into a 5Mt pa open pit and underground mining operation was completed during 2015. Gruyere is part of a regional exploration license holding covering 5000km 2 . A Joint Venture has been established with Sumitomo Metal Mining over approximately 2,900km 2 of the licenses where Resources have yet to be delineated.


Catalysts: Economic potential of the Gruyere Project is supported by its progression to a Pre Feasibility Study which is targeted for completion at year's end. Gruyere’s large scale, long life, and under-explored surroundings have the potential to attract interest from established miners. Deep drilling at Gruyere and appraisal of regional targets are scheduled to further demonstrate the potential of Gold Road’s land package.

Hurdles: Gold Road is reliant on external capital and will require further funding to develop a mining operation in the Yarmana district. There is no guarantee existing resources can be converted into economically recoverable reserves, and that down-trending gold prices won’t continue.

Investment View: Gold Road offers speculative exposure to the gold mining industry. We are attracted to the magnitude of its land package in the Yarmana region, existing resource inventory at Gruyere, and track record of low discovery costs. As the Company advances Gruyere toward PFS completion and demonstrates additional prospectivity within its land package – we expect takeover interest to build and initiate coverage with a ‘spec buy’ recommendation.


General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

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The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

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