Gascoyne acquires new gold project

THE BOURSE WHISPERER: Gascoyne Resources has entered into a binding agreement to purchase the Dalgaranga gold project and surrounding exploration tenements from private tenement holders.

The Dalgaranga project is located northwest of Mt Magnet in the Murchison region of Western Australia.

The project contains JORC gold resources of:

7.5 million tonnes at 1.58 grams per tonne gold for 382,000 ounces in the Measured and Indicated categories.

There has been very limited recent exploration conducted at Dalgaranga.

Gascoyne said it has identified potential at the project for resource growth, including a number of prospects with significant high grade gold intersections.

These include:

22 metres at 6g/t gold and 6 metres at 10.2 g/t gold and 7 metres at 10.8 g/t gold that have not been followed up and are yet to be included in the resource base.

 

Location of Dalgaranga gold project. Source: Company announcement

 

“This is a significant acquisition by the company that fits our exploration model of seeking large tenement holdings with known free milling gold and the potential to host plus one million ounce deposits, where there has been little exploration using modern techniques,” Gascoyne Resources chairman Graham Riley said in the company’s announcement to the Austyralian Securities Exchange.

“Both Glenburgh and Dalgaranga independently hold this potential, and together already boast a JORC compliant resource in excess of 1.08 million ounces.

“At the 100 per cent-owned Glenburgh project, where the company is completing a 40,000 metre drill program, this approach has already resulted in an increased and fast growing resource of over 500,000 ounces during the past year, and highlights the growth potential this strategy can deliver.

“Whilst Glenburgh is more advanced and retains priority, preparations for a significant exploration program at Dalgaranga have already commenced, requiring the compilation of all historical data, (including the mapping of various high grade intersections which have yet to be followed up), and the recalculation of the existing gold resource.

“The acquisition of Dalgaranga represents an important step in the execution of the Company’s growth strategy, and I look forward to the commencement of the exploration programme in the coming weeks.”

Gascoyne will acquire an 80 per cent interest in the Dalgaranga project by issuing a total of seven million shares and payment of $150,000 cash upon formal documentation.

Gascoyne may move to 100 per cent ownership of the project at development should the vendors elect to exchange their 20 per cent interest for a 2 per cent Net Smelter Return royalty.