Gascoyne Resources continues to extend near-mine area at Dalgaranga gold operations
Gascoyne Resources expects to be mining the Gilbey’s North and the Gilbey’s Eastern Footwall discoveries in six months.
Shallow high grade intercepts across the eastern side of Gascoyne Resources’ (ASX: GCY) Gilbey’s main pit have expanded and confirmed the continuity of gold mineralisation.
At Gilbey’s East, less than 1km from the company’s 2.5 million tonnes per year carbon-in-leach processing plant at its Dalgaranga project, recent drilling targeting infill and down-dip extensions of previous intercepts has “continued to deliver”.
Latest highlight intersections from the Gilbey’s Eastern Footwall include 3m at 4.5 grams per tonne gold, 5m at 7.8g/t, 2m at 5.2g/t and 13m at 2g/t gold.
Gascoyne says the Eastern Footwall “represents a substantial and strategic target area for delivering life extensions for Dalgaranga”.
100% hit rate with gold in each drill hole
This, it says, is underlined by four factors: the presence of numerous high grade mineralised horizons, a potentially lower strip ratio than other advanced targets, ease of drilling and mine access, and a continuing 100% hit rate — intercepts above 1g/t — with every resource drill hole so far completed.
Gascoyne operates the 100%-owned Dalgaranga gold mine, located in the Murchison region of Western Australia.
Dalgaranga produced more than 71,000oz of gold in the 2022 financial year.
Production is currently sourced predominantly from the Gilbey’s and Plymouth open pits, but the company has been pursuing near-mine exploration which has highlighted the potential to develop new higher-grade ore sources within a 1km to 2km radius of the existing plant.
‘Intriguing puzzle’ for geology team to solve
Managing director and chief executive officer Simon Lawson said the company is continuing to pursue the highest priority near-mine targets and has a strong plan to increase the mine’s life.
“Gilbey’s North is the obvious superstar with screaming grade and thickness while Gilbey’s East is the larger-scale quiet achiever,” he added.
“The Gilbey’s South, Plymouth and Sly Fox trend prospects are the current dark horses, with surprising drill hits creating an intriguing puzzle for our geology team to solve.”
Each area requires a different approach, said Mr Lawson.
Gilbey’s North needs periods of intense drilling, interpreting results, and then drilling again.
Gilbey’s East needs methodical, systematic drilling to create shallow mining opportunities.
Gilbey’s South, Plymouth and Sly Fox are all related and need additional drilling work.
“We are finding all the right material with the drill bit,” Mr Lawson said.