Gascoyne announces increases to group gold resources and grade

Gascoyne Resources (ASX: GCY) has announced a 15.6% boost in its group gold resources northeast of Perth to 1.37 million ounces and an associated grade increase of 29%.

In its annual resource statement released today, the company confirmed its new group mineral resource stands at 36.74 million tonnes grading 1.16 grams per tonne gold for 1.37Moz.

It includes an initial resource estimate for the newly-discovered Gilbey’s North deposit and high-grade Never Never lode of 1.43Mt at 2.32g/t gold for 107,200oz.

This comprises 780,000t at 1.10g/t for 27,600oz at Gilbey’s North and 660,000t at 3.78g/t for 79,600oz at Never Never.

The company’s mineral resources across the Murchison region have increased to 20.17Mt at 1.3g/t gold for 833,700oz, representing a jump of 28.5% in ounces and 61% in grade.

The changes were primarily driven by the addition of the Gilbey’s North (Never Never), Yalgoo (comprising the Melville and Applecross prospects) and the Archie Rose gold deposits, as well as a change in cut-off grade for the Gilbey’s Complex from 0.25g/t to 0.5g/t.

Core focus

Gascoyne said its core focus remains on supporting the centrally-located 2.5Mt per annum Dalgaranga processing plant, northwest of Mt Magnet.

The company aims to de-risk feed sources through high-grade discoveries and resource growth.

Central to this strategy is the emerging Never Never lode, discovered earlier this year and located less than 1 kilometre from the Dalgaranga plant.

Never Never’s initial resource consists of an indicated component of 330,000t at 2.27g/t gold for 24,200oz and an inferred portion of 320,000t at 5.31g/t gold for 55,500oz.

Current drilling is targeting rapid resource extension with several high-grade reverse circulation intercepts already received outside of the resource envelope.

Diamond drilling is also underway to increase confidence and understanding, with the first hole yielding a mineralised intercept of more than 50m in width with visible gold.

Increasing life and grade

Gascoyne managing director Simon Lawson said the new resource statement reflected the company’s goals of increasing mine life and improving grade.

“This statement gives an account of the way we are creating value across our business and specifically what we are doing to extend the mine life of our key operation at Dalgaranga and the processing plant which is the centrepiece hard asset of our business,” he said.

“We are purposefully aligned in building a strong business around our core gold assets and are genuinely excited about the future as we continue to drive value creation with the drill bit.”