Gascoyne Resources Ltd (ASX:GCY) has extended the Dalgaranga Gold Project’s Never Never lode in WA at depth thanks to another thick, high-grade gold hit.
The explorer uncovered a 50-metre intersection at 4.58 g/t — including a higher grade 24-metre hit that weighed in at 7.3 g/t — around 40 metres below the current resource envelope.
This reverse circulation (RC) intersection starts at 191 metres down-hole and takes the mineralisation from near-surface to beyond 200 metres deep, meaning the system remains wide, high-grade and open at depth.
What’s more, extensional RC drilling — outside the ground covered in an imminent mineral resource — returned 31 metres at 3.43 g/t, including a higher grade 15-metre, 5 g/t gold hit.
On top of that, visible gold was logged in a new, 50-metre-wide mineralised zone that was uncovered during diamond drilling.
This discovery indicates that Never Never’s steeply-plunging system remains consistently wide and open beyond 240 metres vertical below surface and investors have responded positively, sending shares as much as 16.67% higher to $0.385.
What’s on the cards?
Investors also won’t have to wait long for more news from the Dalgaranga camp.
Gascoyne plans to detail its first mineral resource estimate (MRE) for the Gilbey’s North and Never Never targets as part of its annual resource report, which is slated for release on Thursday, September 8.
It’s important to note that the latest assays don’t factor into the MRE, meaning there’s more gold to incorporate in future upgrades.
The new findings, along with fast-tracked assays for the visible gold in the diamond drill core, as well as 10,000 metres of scheduled resource conversion and grade control RC assays, will be included in an updated Never Never MRE, scheduled for the last quarter of 2022.
“Drill-defined evidence”
Gascoyne Resources managing director and CEO Simon Lawson said the new results clearly demonstrated a wide, high-grade and potentially very large gold system at Never Never.
“Wherever we drill to test the extents of this beast we hit more gold!” he exclaimed.
“The exceptionally high-grade 50-metre intersection gives us drill-defined evidence that the lode extends 40 metres below the current mineral resource envelope, while our latest diamond drill core shows visible gold in logged mineralisation at depth.
“Every gold camp starts as an initial discovery and, with the years of exploration and mining work that follow, different styles of mineralisation are typically discovered as geological understanding evolves."
An evolving gold discovery
If you want an example of this region’s potential, you need look no further than Dalgaranga's famous neighbours.
For example, the 6-million-ounce Mt Magnet gold camp — just 55 kilometres east — boasts several different ore hosts and styles of mineralisation, developed over more than a century of consistent exploration and operations.
“In a mature field such as Mt Magnet, targeting those numerous known hosts and styles typically accelerates discovery timeframes and the path to rapid resource growth,” Lawosn explained.
By comparison, at Dalgaranga — up until just recently, at least — there has been just one main recognised style of mineralisation; a high-volume and lower-grade gold stratiform-type or predominantly ‘rock-type’-style.
But with the latest findings in tow, Lawson said Never Never was clearly a new and significant mineralisation style for the Dalgaranga goldfield.
“Its location, geometry and orientation are very clearly influenced by regional-scale structures and not necessarily rock type.
“The very high volume of quartz/silica, the presence of pervasive chlorite, sericite and carbonate alteration – as well as the almost complete lack of any silver or base-metals in high-grade mineralisation intervals – is completely atypical for the area.”
All things considered, Lawson reckons Never Never is a structurally-controlled, shear-hosted, high-grade gold deposit style of probable hydrothermal origin.
“These types of deposits are well known across the major goldfields of the world and throughout Western Australia but until now never seen in the Dalgaranga greenstone belt,” he said.
For Lawson, the question now becomes just how deep Never Never goes — and how many more Never Nevers are out there.
“We are only just starting on our journey towards unlocking the different styles of mineralisation within the Dalgaranga greenstone belt. We have got some catching up to do!” he concluded.