Gascoyne Resources Scores Deep Drilling Hit at Sly Fox

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THE DRILL SERGEANT: With its managing director Mike Dunbar set to close the RIU Resources Roundup in Sydney, Gascoyne Resources (ASX: GCY) announced further assay results from RC drilling at the Sly Fox deposit, within the company’s 100 per cent-owned Dalgaranga gold project in Western Australia.

Gascoyne released the results for the deep RC drilling completed at Sly Fox, which include the deepest drill hole (DGRC345) to intersect the Sly Fox shear zone to date.

The hole intersected the widest and highest grade zone discovered at Sly Fox including:

40 metres at 2 grams per tonne gold, including 23m at 2.5g/t from 185m downhole.

Gascoyne Resources claimed the intersection had confirmed the strong geological continuity of the deposit at depth, at increased grade and width and, along with intersected shallow mineralisation announced in April, is currently being incorporated into an initial Mineral Resource estimate for the deposit’s defined 250m strike length.

Initial metallurgical testwork carried out on Sly Fox drill samples produced first-rate overall recoveries using the proposed Dalgaranga processing plant flowsheet, including:

Oxide Composite Recovery of 98 per cent, with 30 per cent Gravity Gold Recovery;
Fresh Composite Recovery of 93 per cent with 55 per cent Gravity Gold Recovery; and
Fresh Shale Recovery of 89 per cent with 60 per cent Gravity Gold Recovery.

The company anticipates release of the initial Sly Fox Mineral Resource in the next two to three weeks.

“On the back of these RC drill and the initial metallurgical results, diamond drilling at the Sly Fox deposit for geotechnical and metallurgical testwork is scheduled to commence next week,” Gascoyne Resources said in its ASX announcement.

“This drilling has been planned to allow for initial pit optimisations to be completed once the Mineral Resource has been estimated.”

The Dalgaranga gold project currently contains a Measured, Indicated and Inferred Resource of 29.6 million tonnes at 1.3g/t gold for 1,230,000 ounces of contained gold, including Proved and Probable Ore Reserve of 552,000 ounces of gold.

Email: admin@gascoyneresources.com.au

Website: www.gascoyneresources.com.au