Gascoyne Resources takes Dalgaranga over 1M ounce mark

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THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) has announced an updated Mineral Resource estimate for the company’s 80 per cent-owned Dalgaranga gold project in the Murchison region of Western Australia.

The new estimate has been updated to include recent drilling results and conforms to the JORC 2012 code.

The combined Dalgaranga Measured, Indicated and Inferred Mineral Resource now stands at 23 million tonnes at 1.4 grams per tonne gold for 1.02 million ounces of gold, of which 21.8 million tonnes at 1.4g/t gold for 949,000 ounces is within the Gilbeys deposit.

“The updated JORC 2012 Dalgaranga Resource represents a major step forward for Gascoyne’s Dalgaranga project and the company as a whole,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.

“The company now has two plus-one million ounce gold projects on granted Mining Leases within Western Australia.

“Development Studies at both the Glenburgh and Dalgaranga projects highlight the potential for near term, high margin and relatively low capital cost developments.

“It is expected that the Dalgaranga project which has potential for 80,000 to 100,000 ounces per annum for around six years, will be developed first providing a solid base on which to grow the production base to plus-150,000 ounces per annum with the development of Glenburgh.”

Highlights from the updated resource include:

A 35 per cent increase in total Mineral Resource at Dalgaranga of over 260,000 ounces to plus-one million ounces;

509,000 ounces of Measured and Indicated Mineral Resource at Dalgaranga project, an increase of 215,000 ounces (74 per cent), adding substantially to the confidence in the Gilbeys Mineral Resource and to the project as a whole;

The Gilbeys Mineral Resources increased 39 per cent to 21.8 million tonens at 1.4g/t gold for 949,000 ounces (using a 0.5 g/t cut-off above 120mRL and 1.0g/t cut-off below 120mRL);

Excellent grade and geological continuity of the mineralisation at Gilbeys; and

97 per cent of the resource within the Detailed Scoping Study stage three pit design is classified as Measured or Indicated, providing an excellent base to define an Ore Reserve on completion of the current Pre-Feasibility Study.

Email: admin@gascoyneresources.com.au

Website: www.gascoyneresources.com.au