Release date- 23012017 - Gascoyne Resources Limited is pleased to advise that it has completed initial metallurgical testwork at the Gilbeys South prospect at the 100% owned Dalgaranga Gold Project.
The Dalgaranga Gold Project already contains a Measured, Indicated and Inferred Resource of 25.7Mt @ 1.4 g/t gold for 1.12 million ounces of contained gold including Proved and Probable Ore Reserve of 552,000 ounces of gold. The Company expects to report an update to Resources and Reserves later this quarter once further assay results are received from recent drilling. The initial metallurgical testwork results reported herein confirms that the Gilbeys South prospect can be recovered through the proposed Dalgaranga process plant.
Gilbeys South Metallurgical Testwork Summary
Four composite samples have been tested to confirm the metallurgical characteristics of the Gilbeys South prospect. Samples were collected from different geological domains (oxide, transition and fresh) as well as testing the total strike length of the prospect. The samples were composited from the RC drilling that has been completed at the prospect and the results confirm excellent total recovery not only in the oxide but also from the transitional and fresh mineralization.
The tests have demonstrated very rapid leaching kenetics for each of the samples, and overall recovery of between 90.1% and 95.1% (average of 93.3%) after 24 hours, and very high gravity gold recovery of between 24% and 45% (average of 36.5%). These recoveries and leaching kenetics are comparable to the Gilbeys Deposit.
Another favourable outcome of the testwork is confirmation of very low reagent consumption required to achive the high recoveries outlined above. The cyanide consumption from the tests ranged from 0.26kg/t to 0.39kg/t (average consumption of 0.34kg/t). This consumption rate is slightly lower than historically used in the original process plant and adopted in the recently completed Feasibility Study, which assumed 0.4kg/t would be required. Cyanide is one of the highest reagent costs in the process plant, so confirmation of low cyanide consumption from the Gilbeys South prospect is expected to have a postive impact on processing costs for the Gilbeys South prospect.
Significant Newsflow over the Coming Months
As announced to the ASX on the 25th November, 2016 the Gascoyne Board has approved the Dalgaranga Feasibility Study and subject to obtaining a suitable financing arrangement, has approved the project to proceed to construction. Whilst financing is progressed over the coming months, the Company expects to deliver significant and regular news flow as it continues to make strong progress on early development activities at Dalgaranga and continues to progress an extensive exploration programme, with key news flow to be reported including:
Completion of project permitting and securing of long lead time items required for construction of the plant;
Release of a large number of drill results that are pending, including: o More than 40 RC holes from Gilbeys South and
Approximately 300 Aircore holes from regional and sterilisation drilling
Release of results from ongoing drilling at near-resource drill targets and regional drill targets at Dalgaranga;
Mineral Resource update at Gilbeys, including a maiden resource in respect of Gilbeys South and
An update to the Ore Reserve, Open Pit Mine Designs and Mine Schedule
All of these activities will be completed with the Company's existing funds as well as continuing to maintain an aggressive exploration programme over the coming months. For further information please refer to the Company's website or contact the Company directly.
BACKGROUND 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 two 100% owned gold projects combined have 2.1 million ounces of contained gold on granted Mining Leases:
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 25.7 Mt @ 1.4g/t Au for 1,116,000 ounces of contained gold. The Dalgaranga project has a Proved and Probable Ore Reserve of 552,000 ounces of gold. 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 2.5Mtpa processing facility resulting in production of around 100,000ozpa 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.
The Glenburgh Project in the Gascoyne region of Western Australia, has a Measured, Indicated and Inferred resource of: 21.3 Mt @ 1.5g/t Au for 1.0 million oz gold from several prospects within a 20km long shear zone.
A preliminary feasibility study on the project has been completed that showed a viable project exists, with a production target of 4.9mt @ 2.0g/t for 316,000oz (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.
The project includes the high grade Hibernian deposit which contains a resource of 116,400 tonnes @ 6.4 g/t gold for 24,000 ounces in the Measured, Indicated and Inferred JORC categories. The deposit lies on a granted mining lease and previous drilling includes high grade intercepts, 2m @ 147.0 g/t gold, 5m @ 96.7 g/t gold and 5m @ 96.7 g/t gold associated with quartz veining in shallow south-west plunging shoots. The Hibernian deposit has only been drill tested to 70m below surface and there is strong potential to expand the current JORC Resource with drilling testing deeper extensions to known shoots and targeting new shoot positions.
Gascoyne is continuing to evaluate the Glenburgh gold deposits to delineate meaningful increases in the resource base and progress project permitting, while also continuing to explore the Dalgaranga project with the view to moving towards a low capital cost development as rapidly as possible. The Company also has 100% ownership of the high grade Egerton project; where the focus has been to assess the economic viability of trucking high grade ore to either Glenburgh or to another processing facility for treatment and exploration of the high grade mineralization within the region. Further information is available at www.gascoyneresources.com.au
Gascoyne Resources Ltd.
Level 1, 41-47 Colin Street
West Perth WA 6005
Tel: +61 8 9481 3434
Email: [email protected]