Gascoyne Resources Ltd (ASX:GCY) has delivered a 15.6% increase in mineral resources to 36.74 million tonnes at 1.16 g/t gold for 1.37 million ounces across its portfolio of projects in Western Australia with the resource grade up by 29%.
The 2022 resource statement includes an initial resource estimate for the recently discovered Gilbey’s North-Never Never gold deposits which delivered 1.43 million tonnes at 2.32 g/t gold for 107,200 ounces, comprising :
- 660,000 tonnes at 3.78 g/t for 79,600 ounces at Never Never deposit; and
- 780,000 tonnes at 1.10 g/t for 27,600 ounces at Gilbey’s North deposit
Gascoyne’s core focus remains on supporting the Murchison Region and the centrally located 2.5 million tonnes per annum Dalgaranga processing plant by de-risking feed sources through high-grade discoveries and systematic resource growth.
In addition, the company’s drilling of the Never Never deposit is targeting rapid resource extension with several high-grade reverse circulation (RC) intercepts already received outside the current resource envelope.
What’s more, Gascoyne is conducting diamond drilling to increase confidence and understanding, with the first diamond hole yielding a 50-metre wide mineralised intercept with visible gold, on target and another 80 metres further down-plunge of the Never Never resource envelope.
Resource upgrade
Gascoyne managing director and CEO Simon Lawson said: “We continue to systematically focus on the key elements of our business – managing costs, retaining people, retiring debt, increasing mine life and importantly improving grade.
“This annual resource statement gives an account of the way we are creating value across our business, specifically what we are doing to extend the mine life of our key operation at Dalgaranga and how we are working to improve the head-grade of the 2.5 million tonnes per annum processing plant there, the centrepiece hard asset of our business.
“To this end, we are very pleased to add the initial mineral resource estimate for the Gilbey’s North-Never Never and Archie Rose gold deposits to our Murchison Region resources.
“An additional 146,000 ounces of shallow, high-grade material, with over 100,000 of those ounces coming from the recently discovered Gilbey’s North - Never Never Gold Deposits, located less than 1 kilometres from our plant and on a granted Mining Lease."
Group mineral resource estimates for Gascoyne Resources.
Global resource commentary
Initial mineral resource estimates have been included for Gilbey’s North-Never Never and Archie Rose deposits and, along with the Gilbey’s Complex, are collectively included in the Dalgaranga Gold Project (DGP).
The Melville and Applecross deposits are collectively included in the Yalgoo Gold Project (YGP). The Murchison region resource logically includes DGP and YGP.
No changes have been made to Glenburgh Gold Project (GGP) or Egerton Gold Project (EGP) mineral resource estimates, collectively the Gascoyne region resource.
mineral resource estimates by region for Gascoyne Resources
Increase in cut-off grade at Dalgaranga
Lawson adds: “Further, we have modified the cut-off grade for the main Gilbey’s Complex at the Dalgaranga Gold Project from 0.25 g/t gold to 0.5 g/t gold.
“Increasing the COG reflects a more realistic statement of resource ounces at Gilbey’s and also streamlines the cut-off grades used across the various gold deposits of the DGP.
“An upward shift in COG decreases overall resource ounces on paper, however, the addition of the new shallow, high-grade Gilbey’s North-Never Never resource ounces offsets and replaces those lower grade more expensive 'paper' ounces.
“The Gascoyne team is purposefully aligned in building a strong business around our core gold assets and we are all genuinely excited about the future as we continue to drive value creation with the drill bit!.”
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