Gascoyne continues golden run at Dalgaranga

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THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) has received the results from the final two diamond drillholes from a drilling program recently completed at the company’s Dalgaranga gold project in the Murchison region of Western Australia.

The Dalgaranga project contains a Measured, Indicated and Inferred Resource of 14.1 million tonnes at 1.7 grams per tonne gold for 756,000 ounces of contained gold.

Gascoyne claimed the final two diamond cored holes at Dalgaranga continued to confirm wide zones of gold mineralisation beneath the Gilbeys pit.

Results include:

DGRC055-DT
26 metres at 1.5 grams per tonne gold, including 14m at 1.7g/t gold;

DGRC053-DT
34m at 1g/t gold, including 16.55m at 1.2g/t gold and 5.15m at 1.3g/t gold.

The company said these results complement RC and diamond drilling intersections it reported last week, which included:

39.9m at 2g/t gold, including 9.5m at 3.9g/t gold (including 0.5m at 48.4g/t gold);

13m at 2.7g/t gold from 46m, including 5m at 5.6g/t gold;

21m at 1.5g/t gold, including 10m at 2.1g/t gold; and

15m at 1.5g/t gold and 3m at 4g/t gold.

The RC and Diamond tail drillholes have been carried out as part of a program Gascoyne designed to test the continuity of the gold mineralisation immediately below and along strike from the existing Gilbeys open pit and to test potential resource extensions in poorly drilled areas within the Gilbey’s Stage 3 pit design.

Gascoyne expects the drilling will enable it to classify the vast majority of Mineral Resource within this pit design to Measured or Indicated status, and will provide material for PFS metallurgical testwork.

“Hitting strong, shallow oxide extensions to the Gilbeys Resource within the area of our proposed pit cutback, plus thicker zones than expected below the current pit, should hopefully push the global Resource at Dalgaranga upwards toward one million ounces (currently 756,000 ounces), allowing us to contemplate adding an upside case envisaging up to 100,000 ounces per annum production to our recently commenced Pre-Feasibility Study,” Gascoyne Resources chairman Mike Joyce said in the company’s announcement to the Australian Securities Exchange.

“We will also initiate aggressive exploration drilling to test high priority targets close to current resources on our large ground holdings at Dalgaranga.

“Gascoyne’s work since acquiring the Dalgaranga project is the first drilling in over 15 years.

“We believe the full potential of this goldfield has not yet been realised.”

Gascoyne indicated the new drilling results, along with the other recent RC and Diamond drilling results, will be incorporated into a revised Mineral Resource by the end of October, which will in turn form the basis for the current PFS.

Website: www.gascoyneresources.com.au