Gascoyne Resources : More Strong Diamond and RC Drilling Results from Dalgaranga, 3.6 MB

4187a199-e392-4334-8ffa-733017fb3166.pdf

June 23rd 2016

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

MORE STRONG DIAMOND AND RC DRILLING RESULTS FROM DALGARANGA

• Further results have been received from resource and metallurgical diamond core drilling which continues to indicate increasing down dip widths and grades at the Gilbeys Deposit;
  • An overall zone of 69.49m @ 1.12 g/t gold; including 42.49m @ 1.55 g/t gold (incl 12 m @ 3.12g/t gold) from core hole DGDH011
  • 23.88m @ 1.43 g/t gold from core hole DGDH005
• Potential for significant extensions south of the Gilbeys resource indicated by initial RC drilling;
  • 12m @ 1.17 g/t gold,
  • 7m @ 1.48 g/t gold,
• Excellent RC drilling results from resource extension drilling at the Golden Wings deposit;
  • 15m @ 2.49 g/t gold,
• Aggressive exploration drilling programme is continuing to test several gold prospects within close proximity to the existing Gilbeys and Golden Wings deposits
• Dalgaranga Gold Project Feasibility Study progressing on schedule

Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to report on further assay results received from exploration and feasibility drilling activities at its 80% owned Dalgaranga Gold Project in the Murchison region of Western Australia. The Dalgaranga Gold Project contains a Measured, Indicated and Inferred Resource of 23.7Mt @ 1.4 g/t gold for 1.05 million ounces of contained gold including an initial Proved and Probable Ore Reserve of 442,000 ounces of gold (see Figure 1 & 2 & Table 4 & 5).

Dalgaranga Drilling Update

As announced to the ASX on May 24th and June 9th 2016, an aggressive drill programme is underway on site at the Dalgaranga Gold Project. The drilling is a combination of regional RC and Aircore exploration drilling at the Hendricks, Beefeater, Vickers, Caorunn and Gilbeys South prospects, as well as RC and diamond resource drilling at the Gilbeys and

Golden Wings Deposits (see Figure 2).

Gascoyne is pleased to advise that it has received further results from this drilling programme at the Gilbeys deposit and Gilbeys South prospects, and the Golden Wings deposit. These results are summarised below.

Gilbeys Deposit

Positive results have been received from a further two NQ core holes at the Gilbeys deposit. As previously announced the diamond drilling programme was designed to provide for a resource upgrade (from Inferred to Indicated category), to allow conversion to Ore Reserves and resource extensions, and will also provide samples required for the Feasibility Study metallurgical testwork.

Two more core holes have been completed to date with results confirming or exceeding predicted down dip widths and grades. Results include an overall zone of 69.49m @ 1.2 g/t gold from 278.15m in drill hole DGDH011, including 42.49m

@ 1.55 g/t gold. In drill hole DGDH005 the gold zone returned 23.88m @ 1.43 g/t gold from 280.12 including 5.88m @ 3.09g/t gold. See Figure 3 & 4 and Table 1 for significant assay results and Table 3 for drill hole locations.

P.O. Box 1449, West Perth, Western Australia 6872 Rust House, Level 2, 33 Ord 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

Table 1: Diamond Drill Results from the Gilbeys Deposit

Hole ID	From (m)	To (m)	Interval (m)	Au Grade g/t
DGDH011	278.15	348	69.49	1.12
includes	278.15	321	42.49	1.55
includes	284	296	12	3.12
DGDH005	280.12	304	23.88	1.43
includes	280.12	286	5.88	3.09

Gilbeys South Prospect

Three RC holes have been completed at the Gilbeys South prospect. Significant primary zones of gold mineralisation were intersected that occurs within the broad Gilbeys shear zone outside the Gilbeys resource. Mineralisation dips moderately to the west and remains open at depth and along strike to the south.

Better results returned include; 7m @ 1.48 g/t gold, in DGRC087 from 80m, 12m @ 1.17 g/t gold in DGRC085 from 96m. Gold mineralisation is associated with sheared quartz sericite schists (sheared porphyry). The results highlight the potential of the Gilbeys South area and the possibility with further drilling to extend the proposed Gilbeys open pit southwards. See Figure 3 and Table 2 for results and Table 3 for drill hole locations.

Follow up RC drilling is planned.

Golden Wings Deposit

Two further resource RC holes were completed at Golden Wings. RC hole DGRC059 which was drilled in 2015 (and ended in mineralisation) was extended resulting in a revised intersection of of 15m @ 2.49g/t gold from 72m. Drillhole DGRC088 located at the eastern end of the deposit intersected a number of moderate gold zones including 2m @ 1.08 g/t from surface and 7m @ 0.89 g/t gold from 64m. See Table 2 for results and Table 3 for drill hole locations.

The aggressive regional exploration effort continues at the project, and the Company will report further results from exploration and resource drilling as results come to hand in the coming weeks.

Feasibility Study

The Dalgaranga Feasibility Study (FS) remains on schedule for completion by the end of 2016.

As previously announced the resource and metallurgical drilling is well advanced with the feasibility team currently focussing on the statutory approvals required to develop the project, with the Mining Proposal, Mine Closure Plan and the Works Approvals all expected to be submitted to the Department of Mines and Petroleum next month, and approvals anticipated to be received by the end of 2016.

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 Dunbar Managing Director Table 2: RC Drill Results from the Gilbeys South prospect and Golden Wings Deposit

Hole ID	Prospect/Deposit	From (m)	To (m)	Interval (m)	Au Grade g/t
DGRC085	Gilbeys South	96	108	12	1.17*
136	144	8	0.30*
DGRC086	Gilbeys South	50	52	2	0.31
DGRC087	Gilbeys South	64	65	1	0.98
74	75	1	0.85
80	87	7	1.48
DGRC088	Golden Wings	0	2	2	1.08
30	32	2	0.68
46	47	1	0.51
54	57	3	0.44
64	66	2	0.92
71	78	7	0.89
87	89	2	0.61
DGRC059**	Golden Wings	72	87	15	2.49**

*Denotes 4m composite samples

**Extension of hole from 80m to 120m

Figure One: Gascoyne Resources Project Locations in the Gascoyne and Murchison Regions