Gascoyne Resources (ASX: GCY) has encountered up to 6.2 grams per tonne gold at its recently discovered Plymouth prospect, which is part of the Dalgaranga gold project in Western Australia’s Murchison region.
The new intersections are just 150m north-west of Gascoyne’s current Sly Fox open-pit operation.
Highlights from the reverse-circulation drilling campaign included a 23m intersection grading 4.1g/t gold from 79m, which comprised a 17m interval grading 5g/t gold.
Other notable intersections were 17m grading 2.8g/t gold from 54m, 4m grading 6.2g/t gold and 27m grading 1.2g/t gold.
Gascoyne, which has a current market capitalisation of A$247.7 million, stated the two highest grade results reported today related to a “north trending and westerly dipping zone defined to-date by drilling to be over 150m in length – open to the north and open down dip”.
The intersections reported today were collected as part of an ongoing multi-rig exploration program which aims to test the highest priority targets at the Dalgaranga project which is about 65km by road from Mt Magnet.
Gascoyne is hoping to upgrade its JORC-compliant 31.1 million tonne gold resource for Dalgaranga which graded 1.3 g/t to contain 1.32 million ounces of gold.
The November 2016 resource figure included 15.3Mt of proved and probable ore reserves grading at 1.3 g/t for 612,000oz contained gold.
“This program has already proved a success with these strong results from the new Plymouth prospect and excellent results from the company’s first drill program at the Greencock prospect,” the company told the market this morning.
Gascoyne estimates Plymouth mineralised zones are about 10m to 15m wide.
Drilling results from another 40 holes are yet to be received from the Plymouth, Gilbeys, and Gilbeys South – Sly Fox deposits.
Gascoyne has also started infill and extensional reverse circulation resource drilling at Plymouth and Greencock.
The company began ore-commissioning at Dalgaranga last month, where it already had a 2.5 million tonne per annum processing plant on-site.
Gascoyne securities were unchanged at A$0.57 by late morning.