Gascoyne Resources raises $15M for WA exploration push

THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) has raised an impressive $15 million to fund upcoming exploration programs on high-priority gold targets at the company’s Dalgaranga gold project in the Murchison region of Western Australia, and Glenburgh project in the Gascoyne region of WA.

The two projects have combined existing JORC Resources of over two million ounces of gold (1.05Moz at the Dalgaranga project and 1Moz at the Glenburgh project).

Gascoyne Resources said it considers there to be potential for growth in the Resources at both of these projects.

The raising means it can now commit to an extensive drilling program to better appraise these projects, and follow-up high priority targets.

Besides funding ongoing drilling and other exploration activities, Gascoyne will also now be fully-funded to complete a final Feasibility Study at the Dalgaranga project, for which Pre-Feasibility results announced in March, showed it to be a technically and financially robust gold project able to produce an average of 104,000 ounces of gold per annum over an initial six year mine life at an average All-in Sustaining Cost of $913 per ounce, and capital payback within the first year of production.

Funds raised will also provide the financial flexibility to secure certain long lead time items required to accelerate development of Dalagranga.

This flexibility provides the company with potential to achieve first gold production sooner than would otherwise be possible.

“The overwhelming demand for the Placement from a large number of well-respected institutional investors provides a strong endorsement of the quality of our portfolio, which includes both a near-term high margin gold development asset at the Dalgaranga project, and the Glenburgh project in the Gascoyne region, which provides the company with the ability to grow organically into a plus-200,000 ounce per annum gold producer in the medium term,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.

“The company is now in the strongest position it has ever been to greatly expand its exploration efforts to unlock the very significant exploration upside we believe remains on our projects.”