Gascoyne Resources Ltd (ASX:GCY) has strengthened gold grades from 0.80 g/t gold in 2021 to 1.10 g/t in 2022 as outlined in a 2022 ore reserve statement for the company.
In addition, the company updated its group ore reserves to 2.04 million tonnes at 1.10 g/t gold for 72,100 ounces in the statement
This update is an interim update to reflect that exploration and resource definition activities at the Gilbey’s North-Never Never deposits remain in progress and continue to evolve at a rapid pace.
Further updates to the ore reserve are expected over the next six to 12 months as mineral resource estimates for Gilbey’s North-Never Never are released.
“Lean, agile and efficient”
Gascoyne Resources Ltd (ASX:GCY) managing director and CEO Simon Lawson said: “We have taken some important and very positive forward steps within Gascoyne during 2022.
“Our debt is gone, we have rigs spinning and making high-grade discoveries right in front of the mill, and we have ensured that our operation – as well as our team – is lean, agile and efficient.
“We have beaten some serious odds to get to this point, made some smart plans and we are now executing those plans – but we still have some challenges to face.
“The biggest challenge – the real secret to the new Gascoyne – is to increase the head grade of material going into the Dalgaranga process plant.
“Not the easiest task and, as many geologists will tell you, the hardest aspect of any mining operation to improve is the head grade going into the mill.
“To achieve and maintain a higher average grade ore feed within the Dalgaranga Greenstone Belt is to essentially rewrite the geological model and find better grade than has ever been found before.
“We have taken some key steps towards realising this objective and, with the recent Never Never discovery, we have a real opportunity to transform the future of the operation.
“Our reserves might be small right now, but the grade is king, and we are focusing on delivering ounces at a much higher grade than ever before.”
Summary of ore reserves
Gascoyne’s initial ore reserve for the recently discovered Gilbey’s North-Never Never gold deposits is 380,000 tonnes at 1.63 g/t gold for 20,000 ounces.
This excludes higher grade Inferred material that is currently subject to infill drilling to upgrade to the measured or indicated resource categories.
A decrease in the ore reserve since the July 2021 update is due to:
- Removal of reserve ounces contained in the Stage 3 Gilbey’s Cut-back deferred in October 2021.
- Mining depletion of the Gilbey’s Main Zone Stage 2 and Plymouth deposits.
- Change in cut-off grade for the Gilbey’s Complex from 0.30 g/t to 0.50 g/t.
- Removal of all low-grade material.