Gascoyne widens high-grade gold at Zone 126

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THE DRILL SERGEANT: Gascoyne Resources has received assay results from a further 4 diamond core holes targeting extensions to high-grade mineralisation at the Zone 126 deposit, situated within the company’s 100 per cent-owned Glenburgh gold project in Western Australia.

Gascoyne said the drilling has continued to extend the mineralisation both along strike, down plunge and down section, which has resulted in a major reinterpretation of the geometry and size of the deposit.

 

Zone 126 Long Section. Source: Company announcement

 

Better intersections returned include:

–    6 metres at 6.9 grams per tonne gold from 284.5 metres;

–    13m at 5.7g/t gold from 196m and 2.5m at 27g/t gold from 222.5m;

–    8m at 6.1g/t gold from 178m, including 4m at 11.6g/t gold; and

–    4m at 11.7g/t gold from precollar of diamond hole.

“The significance of these results should not be underestimated,” Gascoyne Resources chairman Graham Riley said in the company’s announcement to the Australian Securities Exchange.

“With the grades and thicknesses of Zone 126 being so consistent and the deposit widening at depth, the potential for this high grade shoot to underpin a profitable underground operation is high.

“With the known shallow open pittable resources and now the potential for a substantial underground development there is potential for the Glenburgh project to support a 100,000 ounce per annum gold operation.

“We anticipate another significant upgrade to our 700,000 ounce gold resource base at the completion of this drill phase.”

Gascoyne said the latest drilling has resulted in the interpreted plunge of the deposit shallowing to approximately 40 degrees and indicates the deposit is widening at depth, with the strike of the deposit now measuring over 200 metres.

The company expects this to significantly increase the ounces per vertical contained, which it said is a key input into any underground evaluation of a gold deposit.

Results from a further three diamond drill holes from Zone 126 are pending.
 
The company currently has a diamond drill rig drilling large diameter metallurgical and geotechnical core holes for a feasibility study.

Once these have been completed, additional drilling will be undertaken to test the depth extensions to the mineralisation at Zone 126.