THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) provided an update on exploration and Feasibility Study activities being carried out at the company’s 80 per cent-owned Dalgaranga gold project in the Murchison region of Western Australia.
Gascoyne Resources recently completed a Pre-Feasibility Study on the Dalgaranga project, which determined a robust development case for the project.
The results encouraged Gascoyne to move quickly to a full Feasibility Study.
As part of the Study, Gascoyne has an aggressive drill program underway with three drill rigs currently on site drilling a combination of regional RC and Aircore drilling at the Hendricks, Beafeater, Vickers and Gilbeys South prospects as well as RC and diamond drilling at the Gilbeys and Golden Wings Deposits.
Gascoyne has also completed a detailed Aeromagnetic survey over the entire project area, flown at 50m spacings at a 30m flying height, which the company said has provided a far superior dataset when compared to historical surveys.
The company said the new data will aid in the identification of structural trends known to host gold mineralisation, extensions of these trends and the definition of additional trends.
The data has been processed and initial interpretations have assisted in fine tuning the exploration drilling currently being undertaken.
In addition to the aeromagnetic survey, Gascoyne has also undertaken an ultra-detailed surface elevation survey, which produced detailed surface contours over the entire Mining Lease, which will assist in the engineering the company requires for the Feasibility Study and detailed engineering required for development of the project.
Following release of the Dalgaranga PFS in March 2016, Gascoyne undertook a capital raising of $15 million via a private placement that was more than three times oversubscribed by domestic and international professional and institutional investors.
The company declared itself to be debt free and in a strong financial position, with cash of approximately $16 million available to progress the Feasibility Study and to order a number of long lead time items for the development.
“It fantastic to be in such a strong position, to have three drill rigs turning at Dalgaranga, focusing on exploration and ongoing resource growth and conversion as well as development related drilling,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.
“The company has never been is a better position to deliver ongoing exploration news and resource growth at the Dalgaranga project over the coming months.
“The Feasibility Study is going full steam ahead with most of the key consultants engaged and actively working towards completion of the Study before the end of the year.
“One area which we are currently focused on is the project permitting, with the aim to get all of the regulatory approvals submitted inside the next three months.
“This will provide the relevant Government agencies sufficient time to assess the development proposals and ensure that permitting is kept off the critical path for development.”
The Dalgaranga gold project contains a Measured, Indicated and Inferred Resource of 23.7 million tonnes at 1.4 grams per tonne gold for 1.05 million ounces of contained gold including an initial Proved and Probable Ore Reserve of 442,000 ounces of gold.