8ddc046d-1183-4637-9b0a-5a8300214469.pdf

June 9th, 2016

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

POSITIVE RESULTS FROM RESOURCE DIAMOND DRILLING AT GILBEYS AND FIRST RC RESULTS FROM HENDRICKS
  • Initial results received from resource and metallurgical core drilling confirms down dip widths and grades at the Gilbeys Deposit;
    • Results for core hole DGDH003A show an overall zone of 76m @ 1.1 g/t gold; including 13m @ 2.8 g/t gold, 24.91m @ 1.0 g/t gold, and 12m @ 1.5 g/t gold
    • DGDH007; 30m @ 1.13 g/t gold and 6m @ 1.13 g/t gold
    • DGDH008; 25m @ 1.24 g/t gold and 6m @ 1.15 g/t gold
  • First RC drilling results from the Hendricks prospect confirm primary gold mineralisation beneath discovery aircore holes, with mineralisation open down dip and along strike;
    • 15m @ 1.5 g/t gold including 8m @ 2.3 g/t gold,
    • 7m @ 1.78 g/t gold, o 6m @ 1.2 g/t gold, o 5m @ 1.2 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 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 2016, an aggressive drill programme is underway on site at Dalgaranga. The drilling is a combination of regional RC and Aircore exploration drilling at the Hendricks, Beefeater, Vickers 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 initial results from this drilling programme at the Hendricks and Beefeater prospects, and Gilbeys deposit. These results are summarised below.

Gilbeys Deposit

Positive results have been received from the first 3 NQ core holes at the Gilbeys deposit. 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.

Three core holes have been completed to date with results confirming or exceeding predicted down dip widths and grades. Results include an overall zone of 76m @ 1.1 g/t gold from 230m in drill hole DGDH003A, including 13m @ 2.8

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

g/t gold, 24.91m @ 1.0 g/t gold and 12m @ 1.5 g/t gold. In hole DGDH007 intersections include 30m @1.13 g/t gold and 6m @ 1.13 g/t gold and in hole DGDH008 gold zones intersected include 25m @ 1.24 g/t gold and 6m @ 1.15 g/t gold. See Figure 3 & 4 and Table 1 for significant assay results and Table 3 for drill hole locations.

In addition, two large diameter (PQ) metallurgical diamond drilling has been completed at the Gilbeys deposit, with samples currently being tested in the laboratory in Perth for comminution (crushing and grinding) and gold recovery testwork.

Table 1: Diamond Drill Results from the Gilbeys Deposit

Hole ID

From (m)

To (m)

Interval (m)

Au Grade g/t

DGDH003A

230

306

76

1.1

includes

237.91

262.82

24.91

1.00

includes

272

284

12

1.5

includes

293

306

13

2.9

DGDH007

184

214

30

1.13

includes

185

191

6

1.41

includes

203

214

11

1.52

and

224

230

6

1.13

and

236

248

12

0.57

DGDH008

239

245

6

1.15

and

256

281

25

1.24

includes

256

266

10

1.70

and

304

308

4

0.63

Hendricks Prospect

The first RC holes have been completed at the Hendricks discovery and assay results returned. Significant primary zones of gold mineralisation have been received confirming that the Hendricks mineralisation dips moderately to the west and remains open and depth and along strike.

Better results returned include; 15m @ 1.55g/t gold including 8m @ 2.3g/t gold, in DGRC072 from 52m, 7m @ 1.78 g/t gold in DGRC078 from 75m, 5m @ 1.24 g/t gold from 10m in DGRC070. Gold mineralisation is associated with sheared quartz and pyrite veined basalt and minor porphry. Follow up RC drilling is planned. See Figure 5 & 6 and Table 2 for results and Table 3 for drill hole locations.

Beefeater Prospect

An initial 5 RC holes have been completed at Beefeater targeting anomalous gold bearing Aircore holes. Drilling intersected a number of intervals in the 0.2 to 0.4 g/t gold range including 16m @ 0.29 g/t in DGRC081 from 20m and 16m

@ 0.27 g/t gold from 32m in DGRC084. 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 in the coming weeks.

Feasibility Study

The Company recently announced the commencement of a full Feasibility Study (FS) in respect of its Dalgaranga Gold Project; including a list of consultants invovled in various components of the Feasibility Study (see ASX Announcement 24th May 2016).

Along with the resource upgrade and metallurgical work described above, the feasibility team is 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.

It is expected that the FS will be completed by the end of 2016, with final development decision in early 2017.

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 Hendricks and Beefeater Prospects

Hole ID

From (m)

To (m)

Interval (m)

Au Grade g/t

DGRC070

10

15

5

1.24

51

52

1

0.54

DGRC071

9

10

1

0.54

19

20

1

0.88

37

43

6

1.24

includes

37

38

1

5.94

96

98

2

1.84

DGRC072

52

67

15

1.55

includes

52

60

8

2.3

79

86

7

0.26

DGRC073

6

14

8

0.31

28

30

2

0.95

76

93

17

0.47

includes

76

77

1

4.32

DGRC074

86

88

2

0.66

DGRC075

41

44

3

0.28

DGRC077

6

8

2

0.31

DGRC078

75

82

7

1.78

includes

78

81

3

3.90

DGRC079

76

79

3

3.23

DGRC080

28

32

4

0.28*

DGRC081

20

36

16

0.29*

DGRC082

24

28

4

0.32*

DGRC083

32

36

4

0.32*

DGRC084

20

36

16

0.27*

*Denotes 4m composite samples

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

Gascoyne Resources Ltd. published this content on 09 June 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 June 2016 02:34:06 UTC.

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