THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) informed the market of the construction progress being made at the company’s 100 per cent-owned Dalgaranga gold project in Western Australia.
Gascoyne Resources has worked up a Measured, Indicated and Inferred Resource at Dalgaranga of 31.1 million tonnes at 1.3 grams per tonne gold for 1,320,000 ounces of contained gold.
This includes Proved and Probable Ore Reserves of 15.3 million tonnes at 1.3g/t gold for 612,000 ounces of gold.
Gascoyne Resources said that GR Engineering (GRES) has made inroads to the design, engineering and construction of the 2.5 million tonnes per annum Dalgaranga processing plant with design and engineering complete and construction well advanced.
The company expects completion of work in approximately 5 months, which meets its scheduling.
“Construction of the project has been progressing on or slightly ahead of the original schedule, which will see commissioning and first gold production in the second quarter of 2018,” Gascoyne Resources said in its ASX announcement.
Construction activites completed to date include: concrete and civil works, including SAG mill foundations, CIL tank foundations, reagent storage foundations and wet area foundations.
SAG mill shell and ends have arrived on site, and installation has commenced.
Crusher foundations have also been completed while the modular crusher is scheduled to be loaded for shipping with delivery to site by mid-February.
CIL tank erection is also complete, including painting.
Foundations for a power station, along with a fuel storage facility have been completed.
Gascoyne indicated it expects the power station and fuel facility to be operational in late April/early May, in preparation for dry plant commissioning, with wet commissioning expected in May.
A tailings storage facility (TSF) and evaporation pond construction has also been completed
The initial TSF lift comprises construction of a 3.5 metre embankment.
The tailings pipeline is currently being installed.
Next to the 240-person Dalgaranga village, clearing has been completed for an airstrip, for which runway construction is well advanced and on schedule to allow direct flights to site from March 2018.