SPARTAN RESOURCES LIMITED September 18th 2017
Australian Securities Exchange Limited Via Electronic Lodgement
57 139 522 900
FINANCIERS MANDATED FOR THE DALGARANGA GOLD PROJECT- Two tier‐one Australian banks mandated to arrange a debt facility of up to $60 million
- The key commercial terms of the facility negotiated include competitive interest rates, early repayment flexibility and an ability to distribute and use free cash subject to certain conditions, providing a flexible and competitively priced financing package
- Construction remains on schedule and on budget for first gold production in Q2 2018
Gascoyne Resources Limited ("Gascoyne" or "Company")(ASX:GCY) is pleased to advise that through its 100% owned subsidiary, GNT Resources Pty Ltd, it has mandated Commonweath Bank of Australia (CBA) and National Australia Bank (NAB) (Financiers) to arrange a debt facility (on a 50:50 basis) on a best endeavours basis to fund the development of the Dalgaranga Gold Project.
The Dalgaranga Gold Project has an initial mine life of 6 years, producing an average of around 100kozpa at an average life of mine all-in sustaining costs of approximately A$1,000/oz. In addition, as demonstrated by Gascoyne since completion of the Feasibility Study, there is very significant potential to extend mine life through near mine discoveries such as the recent Sly Fox discovery which is yet to be reflected in to the Ore Reserves or mine plan.
First gold production is expected late in the June quarter of 2018.
Commenting on the bank mandate Gascoyne's Managing Director Mike Dunbar said: "Mandating tier 1 Australian lenders CBA and NAB for the debt funding required for the development of the Dalgaranga Project is a strong vote of confidence in the project and the work undertaken by the Gascoyne Team since we finished the Feasibility Study in November last year. The terms we have negotiated highlight the quality of the project. With the mandate completed, construction will continue on schedule towards production in Q2 of next year."
Construction of the Dalgaranga Gold Project Well AdvancedP.O. Box 1449, West Perth, Western Australia 6872 Level 1, 41-47 Colin Street, West Perth, Western Australia 6005 Telephone +61 8 9481 3434, Facsimile +61 8 9481 0411
Email: admin@gascoyneresources.com.au, Web: www.gascoyneresources.com.au
The mandated term sheet envisages a facility that includes:
Debt of up to $60 millon
Term of 4 ½ years from first drawdown
Provision for early repayment without penalty
Flexibility to consider an increase in the facility should additional Ore Reserves be delineated
Hedging Facility contemplated including mandatory and uncommitted discretionary lines
After first repayment and Project Completion, debt service surplus operating cashflow can be distributed to Gascoyne subject to certain conditions
Industry standard terms and conditions for a facility of this type.
The due diligence and documentation of the facility is progressing and subject to conditions precedent being met, financial close and first debt drawdown is expected in November this year.
For further information please refer to the Company's website or contact the Company directly. On behalf of the board of
Gascoyne Resources Limited Michael DunbarManaging Director
Figure Three: Dalgaranga Gold Project Site Layout
Figure One: Gascoyne Resources Project Locations in the Gascoyne and Murchison RegionsGOLDEN WINGS DEPOSIT 100,000oz
GILBEYS DEPOSIT 1.1 Moz
DALGARANGA VILLAGE
PROCESS PLANT SITE
Sly Fox DEPOSIT 83,000oz
Figure Two: Dalgaranga Gold Project LayoutBACKGROUND ON GASCOYNE RESOURCES
Gascoyne Resources Limited was listed on the ASX in December 2009 and is focused on exploration and development of a number of gold projects in Western Australia.
The Company's 100% owned gold projects combined have over 2.3 million ounces of contained gold on granted Mining Leases:
DALGARANGA:
The Dalgaranga project is located approximately 65km by road NW of Mt Magnet in the Murchison gold mining region of Western Australia and covers the majority of the Dalgaranga greenstone belt. After discovery in the early 1990's, the project was developed and from 1996 to 2000 produced 229,000 oz's of gold with reported cash costs of less than $350/oz.
The project contains a JORC Measured, Indicated and Inferred Resources of 31.1 Mt @ 1.3 g/t Au for 1,320,000 ounces of contained gold (Table 1). The Dalgaranga project has a Proved and Probable Ore Reserve of 581,000 ounces of gold (Table 2). The Ore Reserves are included in the Mineral Resource.
The FS study that has been completed has highlighted a robust development case for the project.
The FS investigated the development of two open pits feeding a 2.5 Mtpa processing facility resulting in production of around 100,000 ozpa for 6 years and concluded that the operation would be a low cost, high margin and long life operation with high operating margins.
Significant exploration potential also remains outside the known resources with numerous historical geochemical prospects only partly tested.
Table 1: Dalgaranga June 2017 Mineral Resource Estimate (0.5 g/t Cut‐off)
Measured | Indicate | d | Inferred | Total | ||||||||
Type | Tonnage Mt | Au g/t | Au Ounces | Tonnage Mt | Au g/t | Au Ounces | Tonnage Mt | Au g/t | Au Ounces | Tonnage Mt | Au g/t | Au Ounces |
Laterite | 0.2 | 1.6 | 8,000 | 0.6 | 1.1 | 19,500 | 0.02 | 0.7 | 500 | 0.6 | 1.1 | 20,000 |
Oxide | 1.8 | 1.7 | 97,000 | 0.8 | 1.4 | 40,000 | 2.8 | 1.6 | 145,000 | |||
Transitional | 0.5 | 2.1 | 30,000 | 1.2 | 1.4 | 57,000 | 0.5 | 1.5 | 25,000 | 2.2 | 1.6 | 112,000 |
Fresh | 2.2 | 1.4 | 94,000 | 12.6 | 1.2 | 503,000 | 11.0 | 1.3 | 445,000 | 25.7 | 1.3 | 1,042,000 |
Total | 2.8 | 1.5 | 133,000 | 16.2 | 1.3 | 676,500 | 12.3 | 1.3 | 510,500 | 31.1 | 1.3 | 1,320,000 |
Note: Discrepancies in totals are a result of rounding
Table 2 - Breakdown of Material within the Gilbeys and Golden Wings Mine Designs
Deposit | Proved Reserve | Probable Reserve | Inferred Resources | Total | |||||
Tonnes (Mt) | Au (g/t) | Tonnes (Mt) | Au (g/t) | Tonnes (Mt) | Au (g/t) | Tonnes (Mt) | Au (g/t) | Ounces | |
Gilbeys | 2.9 | 1.36 | 10.1 | 1.21 | 0.7 | 1.4 | 13.7 | 1.24 | 553,000 |
Golden Wings | 1.3 | 1.52 | 0.2 | 1.6 | 1.5 | 1.5 | 70,000 | ||
Total | 2.9 | 1.36 | 11.4 | 1.24 | 0.9 | 1.5 | 15.2 | 1.28 | 623,000 |
Note: Discrepancies in totals are a result of rounding
GLENBURGH:
The Glenburgh Project in the Gascoyne region of Western Australia, has a Measured, Indicated and Inferred resource of: 21.3Mt @ 1.5 g/t Au for 1.0 million oz gold from several prospects within a 20km long shear zone (see Table 3)
A preliminary feasibility study on the project has been completed (see announcement 5th of August 2013) that showed a viable project exists, with a production target of 4.9 Mt @ 2.0 g/t for 316,000 oz (70% Indicated and 30% Inferred resources) within 12 open pits and one underground operation. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. The study showed attractive all in operating costs of under A$1,000/oz and indicated a strong return with an operating surplus of ~ A$160M over the 4+ year operation. The study included approximately 40,000m of resource drilling, metallurgical drilling and testwork, geotechnical, hydro geological and environmental assessments. Importantly the study has not included the drilling completed during 2013, which intersected significant shallow high grade zones at a number of the known deposits.
Table 3: Glenburgh Deposits ‐ Area Summary 2014 Mineral Resource Estimate (0.5 g/t Au Cut‐off)
Measured | Indicated | Inferred | Tota | l | ||||||||
Area | Tonnes Mt | Au g/t | Au Ounces | Tonnes Mt | Au g/t | Au Ounces | Tonnes Mt | Au g/t | Au Ounces | Tonnes Mt | Au g/t | Au Ounces |
North East | 0.2 | 4.0 | 31,000 | 1.4 | 2.1 | 94,000 | 3.3 | 1.7 | 178,000 | 4.9 | 1.9 | 303,000 |
Central | 2.6 | 1.8 | 150,000 | 3.2 | 1.3 | 137,000 | 8.4 | 1.2 | 329,000 | 14.2 | 1.3 | 616,000 |
South West | 2.2 | 1.2 | 84,000 | 2.2 | 1.2 | 84,000 | ||||||
Total | 2.9 | 2.0 | 181,000 | 4.6 | 1.6 | 231,000 | 13.9 | 1.3 | 591,000 | 21.3 | 1.5 | 1,003,000 |
Note: Discrepancies in totals are a result of rounding
Gascoyne Resources Ltd. published this content on 18 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 September 2017 01:23:01 UTC.
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