Gold Road (ASX:GOR) up 2c to 22c following yesterday's commentary after today releasing further outstanding results. The company today advised that it had identified a 3km long (and up to 1.2km wide) geochemical gold anomaly (>10 ppb Au) between the Gruyere and YAM14 prospects at the Dorothy Hills Trend. Gold Road's has risen five-fold to $0.24 over the past 12 months due to consistently high-grade drilling results at its Yamarna Project in WA. Interest over the past 12 months has particularly focused on the high-grade drilling results that Gold Road has managed to consistently generate from its Dorothy Hills Trend and these results have fed into a strongly rising share price.


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Gavin Wendt

James, the deposits at Yamarna are likely to be large, so there will be the economies of scale necessary for a remote project like this. Bear in mind though that there are different scales of remote - we're not talking about deepest, darkest Africa here. I believe GOR will initially announce a Gruyere resource of between 1.5M - 2.0M oz grading 1.1g/t - 1.5g/t Au, which in turn could potentially support a 150,000 oz p.a. production scenario. The key here is scale and it's likely that this will end up being a +5Moz gold belt. The company already has Sumitomo as a JV partner, so in effect it already has a major on board for half its project.

James Marlay

Gav, with the remote nature of this project I get the impression GOR is more vulnerable to gold price fluctuations than some other stocks due to the large capex likely to be required. What sort of scale (in terms of ounces) is the Company targeting and likely to need to justify progress toward development scenarios? Is the resource good enough to attract a major?