February 8th, 2016
Australian Securities Exchange Limited Via Electronic Lodgement
57 139 522 900
MULTIPLE NEW GOLD ZONES DISCOVERED IN REGIONAL EXPLORATION DRILLING AT DALGARANGA
Significant new gold zones intersected at the Beefeater, Vickers and Gilbeys North prospects.
Significant shallow gold intersections from wide spaced regional Aircore drilling include;
8m @ 3.6 g/t gold from 24m
13m @ 0.9 g/t gold from 16m to the end of hole (EOH)
4m @ 1.4 g/t gold from 12m
Drilling again demonstrates the significant potential for resource growth at the Dalgaranga Project from new discoveries.
Planning underway for follow-up drilling of the Hendricks gold discovery announced in January
Golden Wings updated Mineral Resource estimate expected this month
The Dalgaranga Pre-Feasibility Study is continuing on schedule for completion in Q1 2016.
Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to advise that it has received the final assay results from the 10,000 metre aircore exploration drilling programme completed in December last year at the Company's 80% owned Dalgaranga Gold Project in the Murchison region of Western Australia. The Dalgaranga Gold Project contains a recently upgraded (ASX announcement November 4th, 2015) Measured, Indicated and Inferred Resource of 23.0Mt @ 1.4 g/t gold for 1.02 million ounces of contained gold (see Figure 1).
As announced to the ASX on 14th of January 2016 ("Hendricks gold discovery") the aircore drilling programme was designed to test multiple high priority targets in the vicinity of the 1Moz Resource base at Dalgaranga which have the potential, with further exploration, to lead to additional discoveries and future Mineral Resource growth at Dalgaranga. The discovery of the Hendicks prospect last month, and now these additional significant new gold zones intersected at the Beefeater, Vickers and Gilbeys North prospects gives fruther credence to our belief that the Dalgaranga Project has significant potential to grow with further drilling.
Drilling targeted shallow mineralisation areas northeast of the Gilbeys deposit; best intersection returned was 8m @ 3.6 g/t gold from 24m in DGAC384 which lies more than 500m along strike from the northern limit of the current Gilbeys resource (see Figure 2). The area has only been partly tested and further follow up is planned to evaluate this mineralisation.
The drilling was focussed on testing a poorly tested 1km long east west trending RAB anomaly from historical drilling. The anomaly lies 1.5km south of the Golden Wings deposit and 2.5km north-east of the Gilbeys deposit (see Figure 2). Six north-south orientated aircore lines have been completed at 100 to 200m line spacings; of most significance is the intersection of a shallow interval of 13m @ 0.9 g/t gold from 16m to the EOH in DGAC323 including 4m @ 1.6 g/t gold from 16m. One hundred metres to the east aircore hole DGAC328 intersected 4m @ 0.4 g/t gold from 20m to the EOH confirming a bedrock anomaly trending east - west in very shallow drilling that remains untested to the east and west.
Aircore drilling targeted untested areas west and north of the historic Vickers prospect. Drilling was completed on 3 north- south orientated lines with a number of anomalous gold zones intersected including 4m @ 1.4g/t gold from 12m in
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: [email protected], Web: www.gascoyneresources.com.au
DGAC357, 8m @ 0.7g/t gold from 60m to EOH in DGAC358 and 12m @ 0.5g/t gold from 48m in DGAC378. These promising intersections confirm an east west trend which is untested to the east (see Figure 2)
Follow up drilling
Planning is well advanced to follow up the Hendricks gold discovery and the wide spaced intersection reported above. The followup drilling will be a combination of aircore and RC to test the mineralisation at depth and along strike. Programme of works (POW's) have been submitted to and approved by the Department of Mines and Petroleum for the planned drilling which is expected to commence in March
Pre-Feasibility Study Golden wings Resource Upgrade
The Dalgaranga Pre-Feasibility Study (PFS) is on schedule for completion in the current quarter. The Golden Wings Resource update is due to be completed this month, and when completed it will be incorporated into the PFS.
The PFS is investgating the establishment of a 2.5Mtpa processing plant on site, which recent pit optimisation studies suggest will result in production of approximately 100,000ozpa for 6-7 years (see ASX Announcement 19th January 2016).
Gascoyne's Managing Director, Michael Dunbar commented:
"The first regional exploration completed at the project for around 20 years has been a great success, confirming the potential of the region, with the discovery of the Hendricks mineralised shear, identification of a bedrock east west mineralised trend at Beafeater and significant mineralisation intersected at Gilbeys North and Vickers.
This exploration along with the recent RC drilling at Golden Wings and the ongoing Pre-Feasibility study support the Company's belief that Dalgaranga project is one of the best undeveloped gold projects in the Murchison."
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
Figure One: Gascoyne Resources Project Locations in the Gascoyne and Murchison Regions
Figure Two: Dalgaranga Project Aeromagnetic Image with Deposit and Prospect Locations, Highlighting the Hendricks Discovery and Recent Significant Regional Aircore Drill Intersections