Gascoyne Resources Increases Dalgaranga Gold Reserves
THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) updated the Mineral Resource estimate for the company’s 100 per cent-owned Dalgaranga gold project in the Murchison region of Western Australia.
Gascoyne Resources noted the updated Resource excludes the recent discovery at the Sly Fox prospect, explaining the Mineral Resource update is for the Gilbeys deposit and includes a maiden Resource for Gilbeys South, less than 10 months after the discovery of the Gilbeys South zone.
The Gilbeys deposit Measured, Indicated and Inferred Mineral Resource now stands at 27.6 million tonnes at 1.3 grams per tonne gold for 1,130,000 ounces of gold.
The Measured and Indicated portion has increased to 16.4 million tonnes at 1.3g/t gold for 685,000 ounces.
The Golden Wings deposit remains unchanged at 2 million tonnes at 1.6g/t gold for 100,000 ounces.
The total Dalgaranga gold project Mineral Resource now stands at 1.23 million ounces (29.6Mt at 1.3g/t gold) with 755,000 ounces in the Measured and Indicated category (17.8Mt at 1.3g/t gold).
Gascoyne Resources said the new resource will form the basis for an updated Ore Reserve, which is expected to be completed in the next few weeks.
The company expects the updated Ore Reserve will be the key input for an updated mine plan, which will form the basis for financial modelling to enable the debt portion of the project financing.
“The updated Resource estimates for Gilbeys to include the Gilbeys South mineralisation is an important step forward for the Dalgaranga gold project as it demonstrates the potential to extend the mine life from the six years envisaged in the November 2016 Feasibility Study to at least seven years, if not more, through exploration success,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.
“As part of the Resource update there has been a substantial increase in the oxide and transitional Resources at Gilbeys.
“This will allow a higher mill throughput in the early years of the project, which will assist in reducing costs, increasing operating margins, and is expected speed up the time for capital payback.
“The increase in the Resource confidence is also significant with the Measured and Indicated portion of the Resource increasing to over 750,000 ounces of gold.
“This is expected to underpin an increase to the Ore Reserve for the project which currently sits at over 550,000 ounces.
“Additionally, and just as importantly, the Resource update excludes the recently discovered Sly Fox mineralisation, where exploration has intersected significant widths and grade of mineralisation.
“This new zone has the potential to extend the mine life well beyond the current six to seven years”
Email: admin@gascoyneresources.com.au
Website: www.gascoyneresources.com.au