Release date- 25012017 - Gascoyne Resources Limited is pleased to advise that it has received the final assay results from the late 2016 RC drill programme at Gilbeys South.
The 100% owned Dalgaranga Gold Project 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 which will include the Gilbeys South prospect. As announced to the ASX on 23 January 2017, metallurgical testwork results confirm that the Gilbeys South gold mineralization can be recovered through the proposed Dalgaranga process plant with high recoveries and low reagent consumption.
Gilbeys South 2016 Drilling
Final results from 2016 Gilbeys South resource drilling have been received. Results continue to show broad zones of gold mineralization south of the existing Gilbeys open pit and resource. A number of high grade zones have been identified with grades up to 83.7 g/t gold intersected. In addition to the receipt of the final results from Gilbeys South, promising results have also been received from a number of RC holes drill testing below mineralized aircore holes between Gilbeys South and the Sly Fox prospect, which suggest the presence of a sub parallel gold bearing trend. Better results from this zone include, 5m @ 2.9g/t gold from 92m in DGRC283, 8m @ 1.1g/t gold from 46m in DGRC279 and 11m @ 0.9g/t gold from 69m in DGRC281. Additional drilling is being planned around the new trend to confirm the orientation and continuity of the mineralization.
Sly Fox Prospect
The Company expects to commence RC drilling to follow up the new Sly Fox gold discovery within the next week. Sly Fox is located only 600m south of Gilbeys deposit, and 500m south east of the Gilbeys South prospect.
Initial aircore drilling reported by the Company on 15 December 2016 intersected very near surface and significant downhole thicknesses of gold mineralization, with 4m composite results including:
36m@ 2.3 g/t Au from 16m, including 16m @ 4.2g/t
39m @ 1.1 g/t gold from 8m to EOH
47m @ 0.5 g/t gold from surface to EOH
Significant Newsflow over the Coming Months
As announced to the ASX on the 25th November, 2016 the Gascoyne Board has approved the 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 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 Aircore drill results that are pending;
Mineral Resource update at Gilbeys, including a maiden resource in respect of Gilbeys South;
An update to the Ore Reserve, Open Pit Mine Designs and Mine Schedule;
Commencement of Sly Fox RC drilling and
Additional drilling planned for new trend between Gilbeys South and Sly Fox.
All of these activities as well as a continuing aggressive exploration programme will be completed with the Company's existing funds over the coming months.
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 100% owned gold projects combined have over 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.
GLENBURGH: 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.
EGERTON: 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.
Gascoyne Resources Limited
P.O. Box 1449, West Perth
Western Australia 6872
Tel: +61 8 9481 3434
Fax: +61 8 9481 0411