Gascoyne increases Glenburgh to 520,000 ounces

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THE DRILL SERGEANT: Gascoyne Resources has completed a re-estimation of the company’s 100 per cent-owned Glenburgh resource.

The re-estimation has been completed by incorporating results the company has received from it Stage 1 drilling program that was completed in May-June this year.

The Inferred Mineral Resource at Glenburgh now stands at 13.8 million tonnes at 1.2 grams per tonne gold for 520,000 ounces of contained gold at 0.5 grams per tonne cut-off.

“This equates to an increase in gold resource ounces of 45 per cent and an increase of 90 per cent in resource tonnage over the last resource estimate, which was completed in November 2010,” Gascoyne Resources said in its announcement to the Australian Securities Exchange.

The Glenburgh project is located in the Gascoyne area of Western Australia.
 
The resource modelling and estimation has been completed in-house by Gascoyne Resources and has been reviewed and audited by independent global resource consultancy Runge.

“The increase comes as a result of incorporating additional drilling, revision of the modelling parameters and a lowering of the cut-off grade due to the increases in the gold price since the last resource was completed,” Gascoyne Resources said.

“It is worth noting that the deposits outcrop at surface and that 98 per cent of the resource is contained in the top 150 metres, with insufficient drilling at depth to date to allow extension of the resource model to greater depths.

“As a result, the deposits remain open down dip and down plunge as well as along strike, with significant potential for additional resource growth.”

The company has RC and Air core drilling ongoing with two rigs currently on site.

This drilling is focusing on extensional resource drilling and delineation of the company’s recently discovered Torino prospect and the exploration of the South West target area.

The new resource is now being incorporated into the current scoping study which the company said is expected to be completed in late August.