Gascoyne Resources announces 2.04Mt ore reserve for Dalgaranga gold project
The global Gascoyne ore reserve totals 2.04Mt at 1.1g/t gold for 72,000oz, including a maiden reserve for Gilbey’s North and Never Never of 0.38Mt at 1.63g/t gold for 20,000oz.
Gascoyne Resources (ASX: GCY) has released an interim ore reserves statement for the Dalgaranga gold project in Western Australia, which reflects exploration and resource definition activities at the newly-discovered Gilbey’s North and Never Never deposits.
Group ore reserves total 2.04 million tonnes grading 1.1 grams per tonne gold for 72,100 ounces, with the grade having increased from 0.8g/t since mid-2021.
It includes an initial ore reserve for Gilbey’s North and Never Never of 0.38Mt at 1.63g/t gold for 20,000 ounces, excluding higher-grade inferred material currently subject to infill drilling to upgrade to measured or indicated category.
The ore reserve for Gilbey’s North has decreased since July last year due to the removal of reserve ounces previously contained in a Stage 3 cutback which was deferred in October 2021, as well as mining depletion of the main zone and Plymouth deposits.
Also part of the decrease was a change in cut-off grade for the Gilbey’s Complex (comprising the Gilbey’s Main, Gilbey’s East, Gilbey’s South Sly Fox and Plymouth deposits) from 0.3g/t gold to 0.5g/t to reflect cost increases across the mining sector over the past 18 months, and the removal of all low-grade (less than 0.5g/t) surface stockpiles.
An updated mineral resource estimate for Gilbey’s North and Never Never is expected before year-end.
Cost assumptions
Gascoyne said the ore reserve estimate had been constrained within final pit designs based on A$2,500 per ounce optimised pit shells.
Other cost assumptions include process plant operations and maintenance costs based on current operating experience and input prices; site general and administrative expenses based on current average rates per tonne of ore processed; and mining costs as provided by the mining contractor on a rate per bank cubic metre by reduced level.
A mining dilution factor of 5% has been applied, together with a 5% mining metal loss.
Positive steps forward
Gascoyne managing director Simon Lawson said the interim reserves statement reflects the company’s positive steps forward during the year.
“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 and our team is lean, agile and efficient,” he said.
“We have beaten some serious odds to get to this point and we are now executing our plans but we still have some challenges to face such as increasing the head grade of material going into the Dalgaranga process plant.”
Head grade effort
Improving head grade has been part of a continued effort by Gascoyne.
“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,” Mr Lawson said.
“We have taken some key steps towards realising this objective and we have a real opportunity to transform the future of this operation … our reserves may be small right now but grade is king and we are focused on delivering ounces at a much higher grade than ever before.”