Posts

Gascoyne Resources Increases Never Never Gold Resource Beyond 720,000 Ounces

/in , /by

THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) reported an updated Mineral Resource Estimate (MRE) for the Never Never gold deposit, part of the company’s 100 per cent-owned Dalgaranga gold project in Western Australia.

The MRE update has come in at: 3.83 million tonnes at 5.85 grams per tonne gold for 721,200 ounces, comprising 2.57 million tonnes at 7.64g/t for 630,100 ounces Underground and 1.27 million tonnes at 2.24g/t for 91,100 ounces for a constrained open pit.

The Resource Classification breakdown for the updated Never Never MRE stands at:

2.95 million tonnes at 5.78g/t gold for 548,400 ounces (76%) classified as Indicated; and
0.88 million tonnes at 6.1g/t gold for 172,800 ounces (24%) classified as Inferred.

“Less than six months ago we established Never Never as a significant new high-grade gold discovery within the Dalgaranga field with a very healthy high-grade resource of 303,000 ounces at 4.64 grams per tonne,” Gascoyne Resources managing director and CEO Simon Lawson said in the company’s ASX announcement.

“Since then, we have been single-minded in focusing on adding high-grade ounces.

“This landmark resource upgrade provides unequivocal evidence that this is one of the most exciting new gold discoveries seen in Western Australia in recent years – and an asset that has clear potential to underpin a potential restart decision for the Dalgaranga processing plant.

“The substantial upgrade, which has seen the contained ounces from the previous MRE more than doubling, has been achieved at an average discovery cost to date of just $13 per ounce.

“This shows the enormous value that can be created with cost effective and targeted exploration!

“Given the strategic location of the relatively new 2.5 million tonnes per annum processing plant sitting at the centre of this resource inventory, we can now see a clear pathway to developing a very solid +5-year mine plan.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Gascoyne Resources Scores Assays Results Outside Never Never MRE

/in , /by

THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) has continued to produce encouraging drilling results from the company’s Dalgaranga gold project in Western Australia.

Gascoyne Resources reported the latest assay results received from ongoing resource and exploration drilling at Dalgaranga, results from which have provided further insights into the potential scale, significance, and growth upside of the Never Never gold deposit.

These assays have demonstrated high-grade mineralisation 110 metres below the current Mineral Resource Estimate (MRE) boundary.

This recent drilling targeted and tested the extremities of the Never Never gold deposit system where the company is looking to ascertain where the edges of this new system are for an upcoming MRE update.

“We have another deep mineralised intercept with visible gold well below the current resource in DGRC1204-DT, with significant infill results within the deeper part of our upcoming resource update in DGRC1185-DT, there continues to be good widths and grades outside the resource to the south in DGRC1210 and at depth in DGDH033 and DGRC1194-DT illustrating that this mineralised system appears to be improving with depth, and to top that another solid high-grade hit, 10 metres at 12 grams per tonne gold in the pre-collar of DGRC1183-DT,” Gascoyne Resources managing director and CEO Simon Lawson said in the company’s ASX announcement.

“The deepest drill-hole assayed so far at Never Never returned an incredible 29 metres at 11.09 grams per tonne gold from over 400 metres downhole and now we get 10 metres at 12 grams per tonne from 237 metres in the same hole!

“To add to the growing high-grade Never Never system and the nearby high-grade prospects being discovered, the company is drilling the deepest hole yet into Never Never targeting 550-600 metres down-plunge to test the depth extension.

“The company is also drilling several high-priority high-grade targets in the near vicinity of Never Never and will provide an update as that work progresses.

“The exploration team is not resting on the Never Never discovery, but looking to take what has been learned and test other high-grade opportunities in and around the Dalgaranga mill as quickly as possible.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Gascoyne Resources Shuts Down Dalgaranga Gold Mine Operations

/in , /by

THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) has taken the decision to close operations at the company’s 100 per cent-owned Dalgaranga gold project in Western Australia for the time being.

Gascoyne Resources said the project had been hit hard in recent times by a culmination of abnormally high rainfall, labour shortages and COVID-19 impacts.

Things haven’t improved through October and into November, leading to reduced production levels, higher production costs and negative cash-flow from operations, which the Gascoyne Board has determined is not sustainable.

And even though it considers its portfolio of gold assets in Yalgoo, Gilbey’s North and Never Never to hold lots of blue sky potential, the transition to mining this higher-grade ore is not affordable and cannot be optimised at the current time given Gascoyne’s liquidity position.

Gascoyne indicated the following steps would be implemented immediately:

• Open pit mining and ore processing operations at Dalgaranga will be suspended;
• The 2.5 million tonnes per annum Dalgaranga mill will be transitioned to operating on a care and maintenance basis over the next 2-3 weeks and maintained in a state ready for a rapid resumption of production; and
• Most of the workforce currently at Dalgaranga will be demobilised.

“It is very disappointing to have to make this decision, particularly in light of all the hard work the exceptional team at Dalgaranga has put in over the past couple of years,” Gascoyne Resources managing director and CEO Simon Lawson said in the company’s ASX announcement.

“The continued pressure of industry-wide cost inflation, approval delays and sub-par operational performance have contributed to the Board and I uniting in the view that continuing to operate in these challenging times is extremely high risk.

“We are committed to developing a sustainable +5-year solid mine plan targeting higher margin production and we strongly believe that this focus is in the best interests of the Company and our shareholders.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Web: www.gascoyneresources.com.au

 

Gascoyne Resources Confirms High-Grade Gold Discovery at Dalgaranga

/in , /by

THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) claimed discovery of a “substantial” new high-grade lode system on the company’s 100 per cent-owned Dalgaranga gold project in Western Australia.

Gascoyne announced the discovery of a plunging lode system it identified through recent drilling that confirmed a high-grade extension on the immediate western flank of its new Gilbey’s North prospect, located less than one kilometres from the 2.5 million tonnes per annum processing plant.

New drilling results include:

DGRC1110
59 metres at 12.5 grams per tonne gold from 139m, including 13m at 51.1g/t gold; and

DGRC1109
39m at 3.09g/t gold from 99m and 20m at 1.12g/t gold from 156m.

Alongside the other recently reported results from this newly discovered east-west oriented mineralised position, other drilling intercepted consistent width and continuity at the high-grade Never Never lode, another part of the emerging Gilbey’s North near-mine discovery.

Recent high-grade gold intercepts from the Never Never lode include:

DGRC0971
54m at 6.55g/t gold from 116m down-hole, including 12m at 20.1g/t gold; and

DGRC1026
32m at 8.58g/t gold from 167m down-hole, including 14m at 16.4g/t gold.

“It’s not every day that you see results like this in the WA gold sector and we are incredibly excited by the potential of this newly discovered lode system on the western edge of the Gilbey’s North discovery,” Gascoyne Resources managing director and CEO Simon Lawson said in the company’s ASX announcement.

“Finding a northerly extension to the main Gilbey’s system was itself a major discovery coup for Gascoyne earlier this year.

“Being situated right in front of the mill and at a time when the company and its loyal investors needed some vision for the future, our team and our aggressive drilling strategy came through.

“To then back that up and discover a completely different style of consistently thick and very high-grade gold mineralisation in the Never Never Lode – an ore body style that has immense potential – is a remarkable achievement by our exploration team and has the potential to reshape our future very quickly.

“We currently have two drill-rigs on the Never Never Lode, one RC rig and one diamond drill rig, and we are aggressively chasing this exciting target.

“We will change the future of Gascoyne one drill-hole at a time.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@gascoyneresources.com.au

 

Web: www.gascoyneresources.com.au

 

 

Gascoyne Resources Amps Up Dalgaranga Exploration Activity

/in , /by

THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) is making good progress with the near-mine exploration strategy being implemented at the company’s 100 per cent-owned Dalgaranga gold project in Western Australia.

Gascoyne Resources reported new results from across multiple existing and emerging prospects, including assay results from the recently discovered zone of gold mineralisation located immediately north of the Gilbey’s open pit, the main ore source, along with further high-grade results outside the current Mineral Resource envelope at the active Plymouth Open Pit and encouraging first-pass results from the Lindville prospect, eight kilometres north of the Dalgaranga plant.

Close-spaced follow-up drilling at Gilbey’s North, immediately north of the main operating pit at Dalgaranga, delivered a series of shallow high-grade gold intercepts including:

DGRC0794
9 metres at 1.28 grams per tonne gold from surface and 29m at 1.81g/t gold from 16m, including 18m at 2.52g/t gold;

DGRC0795
38m at 2.46g/t gold from 11m, including 20m at 4g/t gold; and

DGRC0796
5m at 1.58g/t gold from 2m and 7m at 1.87g/t gold from 25m.

Drill testing to evaluate the extent of gold mineralisation at the active Plymouth Open Pit returned additional assays outside the current Resource envelope including:

DGRC0780
4m at 5.59g/t gold from 56m; and

DGRC0810
7m at 2.61g/t gold from 87m, including 4m at 4.08g/t gold.

Gascoyne has a new JORC 2012 compliant Mineral Resource Estimate (MRE) underway for the active Plymouth open pit encompassing recent drilling results.

A maiden JORC 2012 MRE for the Archie Rose prospect is also nearing completion and due for release in the coming weeks.

“Gilbey’s North is shaping up as a real game-changer for the company,” Gascoyne Resources managing director and CEO Simon Lawson said in the company’s ASX announcement.

“These latest results demonstrate the continuity of consistent, thick zones of high-grade gold mineralisation both along strike and at depth – an outstanding result.

“Our smaller capacity rig has been very busy systematically punching close-spaced 54m deep holes around the highest grade, thickest shallow mineralisation at Gilbey’s North.

“These close-spaced holes will give us confidence in preparations for an initial Mineral Resource Estimate and potential mining scenarios.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@gascoyneresources.com.au

 

Web: www.gascoyneresources.com.au

 

Gascoyne Resources Drills Depth Potential at Plymouth

/in , /by

THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) reported encouraging drill results from near-mine exploration at the company’s 100per cent-owned Dalgaranga gold project in Western Australia.

Gascoyne Resources said its latest exploration developments include positive results immediately below the operating Plymouth open pit and further results from the emerging Gilbey’s North discovery, located immediately north of the Gilbey’s pit, which is the main source of ore feed at Dalgaranga.

The first hole of the Reverse Circulation (RC) drill program returned:

DGRC0753
11 metres at 2.75 grams per tonne gold from 89m.

Drilling at the Gilbey’s North prospect, located north of the main Gilbey’s open pit increased the width and extent of the mineralised zone.

Intercepts from Gilbey’s North include:

DGRC0745
6m at 1.6g/t gold from 91m;

DGRC0749
4m at 3.7g/t gold from 78m, including 1m at 11.3g/t gold; and

DGRC0750
9m at 1.1g/t gold from 84m.

“These latest results demonstrate the significant untapped potential in the near-mine environment at Dalgaranga, with positive new results in close proximity to existing mining areas at both the Plymouth and Gilbey’s open pits,” Gascoyne Resources managing director and CEO Simon Lawson said in the company’s AX announcement.

“With the Gilbey’s North discovery firming up as a very compelling target, and with a number of near-mine targets like Plymouth producing standout results, we are now intently focused on converting these results into potential upgrades to Resources, Reserves and mine life at Dalgaranga.

“These results really reinforce Gascoyne as an exciting growth opportunity, with solid production and a great processing plant at its core – and an active exploration team delivering new ounces and blue-sky growth potential.

“This is a rare combination that I think investors want to see – a company actively capitalising on its potential.

“We are continuing to see good gold production from our plant through the short month of February, we are making meaningful near-mine shallow discoveries with the potential to become mill feed in the short term and, with plenty of untested targets, our team is just getting started.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@gascoyneresources.com.au

 

Web: www.gascoyneresources.com.au

 

 

Gascoyne Resources Increases New Dalgaranga Gold Discovery

/in , /by

THE CONFERENCE CALLER: Gascoyne Resources (ASX: GCY) welcomed visitors to its booth at the 2022 RIU Explorers Conference after reporting new drilling results from the zone of recently discovered gold mineralisation immediately north of the Gilbey’s open pit, the main ore source at the company’s 100 per cent-owned Dalgaranga gold project in Western Australia.

Gascoyne Resources said the new zone, known as Gilbey’s North, has been outlined by shallow RC drilling carried out immediately north of the Gilbey’s pit.

The mineralisation commences from shallow depths (just 1m) and has so far been defined over a strike length of more than 300m, to a depth of almost 200m and over down-hole widths of up to 20m.

“Our on-site geology team continues to deliver consistent drilling results less than one kilometre from the processing facility at Dalgaranga,” Gascoyne Resources managing director and CEO Simon Lawson said in the company’s ASX announcement.

“Importantly, the latest drilling results from Gilbey’s North continue to highlight the similarities with the mineralisation styles seen in the main Gilbey’s open pit and, with the closest assay result received so far less than 50 metres from the pit crest, we are growing increasingly confident of the near-term potential to increase resources, reserves and mine life at Dalgaranga.

“The recent addition of a second dedicated RC drill-rig at Gilbey’s North will help us to accelerate the drill-out of what appears to be an important resource extension area in close-proximity to existing mining operations and infrastructure.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@gascoyneresources.com.au

 

Web: www.gascoyneresources.com.au

 

 

Westgold Lodges Bidder’s Statement for Gascoyne Resources Takeover to Lukewarm Response

/in , /by

THE BOURSE WHISPERER: The battle for Gascoyne Resources (ASX: GCY) between Firefly Resources (ASX: FFR) and Westgold (ASX: WGX) entered a new chapter this morning with Westgold releasing its Bidder’s Statement.

Westgold presented its case, saying in its Statement that it, “is aware of the current Firefly Scheme with Gascoyne and presents this Offer as a value accretive alternative to join with a well-funded, debt free and growth orientated Western Australian gold producer.”

“Our Strategy and Offer Westgold’s strategy is to keep Dalgaranga running at full capacity, managed by the current Gascoyne operating team and contractors, to increase gold output by supplementing the ore feed with higher grade ore from our existing Cue mines.

“Westgold has three operating hubs across the Murchison and is seeking to expand its business by acquiring Dalgaranga.

“The combined company will become one of the top 5 Australian domestic gold producers creating a wealth of opportunities for stakeholders.”

Gascoyne informed the market that it had seen the Westgold Bidder’s Statement and that, “alongside its financial and legal advisers, are currently reviewing the Bidder’s Statement and Gascoyne expects to be in a position to issue its Target’s Statement by no later than 29 October 2021”.

“The Company continues to recommend that shareholders REJECT the Westgold Offer and take no action in response to all correspondence from Westgold.

Gascoyne also made reference to Westgold’s announcement to the ASX on 15 October 2021 which directed shareholders to a separate statement on its website, the “Westgold Statement”.

“The Westgold Announcement was indicated to have been made in response to Gascoyne’s announcement regarding a revised Business Plan for Dalgaranga (refer to Gascoyne ASX announcement of 13 October 2021),” Gascoyne said.

“Gascoyne considers that key aspects of the Westgold Statement are misleading and strenuously refutes the statements made by Westgold that the revised Business Plan escalates operational and financial risk to the Company.”

Whichever way this goes in the end, it is currently making for compelling observance.

 

TO READ THE FULL ANNOUNCEMENTS: CLICK HERE & CLICK HERE

 

Email: admin@gascoyneresources.com.au
perth.reception@westgold.com.au

 

Web: www.gascoyneresources.com.au
www.westgold.com.au

 

Gascoyne Resources Enters Trading Halt to Consider its Options

/in , /by

THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) responded to Westgold Resources’ (ASX: WGX) taunt’s by requesting the ASX place the company’s ordinary shares in a trading halt with immediate effect.

Gascoyne Resources requested the trading halt saying it requires time to complete, “the finalisation and Board approval of a material update to its business plan”.

The company indicated that once the trading halt is lifted it expects to be able to provide additional information in respect of the Westgold Resources’ announcements regarding its unsolicited intention to make a takeover bid for the company.

“The Company requests that trading of its ordinary shares be halted until after the expected announcement of the update to its business plan is made or until the market opens on Wednesday 13 October 2021, whichever is the earlier,” Gascoyne said in its request to the ASX.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@gascoyneresources.com.au

 

Web: www.gascoyneresources.com.au

 

Westgold Resources Goes Bareknuckle in Gascoyne Resources Takeover Stoush

/in , /by

THE BOURSE WHISPERER: Westgold Resources (ASX: WGX) called out the Board of takeover target Gascoyne Resources (ASX: GCY) in an announcement this morning comparing its offer against that of Firefly Resources (ASX: FFR).

Westgold declared it had received a good deal of incoming positive engagement from shareholders of Gascoyne Resources regarding its intention to make an off-market takeover offer for all the issued shares in Gascoyne.

Westgold’s offer is subject to the Firefly Scheme not proceeding and customary off-market takeover bid conditions including, inter alia, a minimum acceptance condition of 50.1 per cent.

Westgold intends to lodge its Bidders Statement with ASIC during the week commencing 10 October 2021.

“It has been more than a week since Westgold announced its intention to make a bid on terms that are far superior to Gascoyne’s proposed merger with Firefly,” Westgold Resources executive director Wayne Bramwell said in the company’s ASX announcement.

“Bemusingly, the Gascoyne Board has provided no guidance to Gascoyne’s shareholders nor to Westgold regarding the Board’s intentions on either the Firefly Scheme or the Westgold Offer.

“The silence from the Gascoyne Board in relation to our Offer is in stark contrast with the volume of calls and emails we are receiving from Gascoyne shareholders wanting our Offer to be considered by their Board.

“Westgold knows the Gascoyne Board is cognisant of its fiduciary duty to its shareholders and would expect the Board to dutifully and proactively act to ensure their loyal shareholders have the opportunity to evaluate and respond to our value accretive proposition.”

The company compared the details of each offer, saying that “Based on the Independent Expert’s Report contained in the Firefly Scheme booklet”, should the Firefly Scheme taken up the value would equate to 18.3 cents per Gascoyne share.

The Westgold Offer of one Westgold share for every four Gascoyne Shares implies a value of 44 cents per Gascoyne share.

The gloves were then removed:

“The Gascoyne Board must act in accordance with its fiduciary duties to its shareholders and take all steps necessary to terminate the inferior proposed Firefly Scheme,” the company stated rather firmly.

“At the very least, Westgold considers that the Gascoyne Board must postpone the proposed Firefly Scheme meeting to allow its shareholders the opportunity to consider the merits of the Westgold Offer, as compared to the dilutive Firefly Scheme.

“The Firefly Scheme structure denies Gascoyne shareholders any vote or choice on this value destructive transaction.

“Westgold considers that once given the choice, a Gascoyne shareholder’s acceptance of the Westgold Offer is in effect also a vote against the Firefly Scheme.

“Westgold encourages Gascoyne shareholders to demand that its Board act in its shareholder’s best interests and provide an opportunity for Gascoyne shareholders to consider and accept the Westgold Offer.

“Westgold is committed to ensuring that Gascoyne shareholders are provided an opportunity to consider and accept the compelling Westgold Offer and has appointed an advisory team of Argonaut PCF and HopgoodGanim Lawyers to assist with the preparation of our Offer.”

 

At the time of publication neither Gascoyne Resources or Firefly Resources had released responding statements.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: perth.reception@westgold.com.au

 

Web: www.westgold.com.au