Gascoyne Resources reports standout drill intercepts from Gilbey’s North gold prospect

Gascoyne Resources (ASX: GCY) has reported standout new drill intercepts from ongoing resource drilling at the Gilbey’s North prospect within the wholly-owned Dalgaranga gold project in Western Australia.

Assays from infill holes up-dip of a recent hit of 54 metres at 6.55 grams per tonne gold have revealed at least two consistent wide zones of high-grade mineralisation.

Highlights were 53m at 3.59g/t gold from 71m, including 9m at 6.8g/t gold and 6m at 6.6g/t gold; 18m at 1.36g/t gold from 132m; 31m at 1.24g/t gold from 68m, and 8m at 16.5g/t gold from 124m, including 1m at 72.8g/t gold; 23m at 1.37g/t gold from 145m; 33m at 2.89g/t gold from 21m, including 6m at 8.3g/t gold; and 12m at 6.11g/t gold from 102m.

The results confirm the consistent width and continuity of mineralisation at the near-mine discovery, and could potentially signal the prospect as a game changer for Gascoyne.

They also reveal, for the first time, two orientations to the mineralisation at Gilbey’s North, in what is emerging as a potentially significant development for ongoing near-mine exploration.

Substantial mineralisation

Gascoyne managing director and chief executive officer Simon Lawson said the results illustrate the substantial nature of gold mineralisation discovered on the edge of the main operating pit at Dalgaranga.

“Recent drilling is starting to show signs that the regional potential could be much bigger than even we could have imagined,” he said.

“We are especially intrigued by the westerly striking shear-zone style of high-grade gold mineralisation at Gilbey’s North, as this has not been seen at Dalgaranga before.”

Potentially extensive system

Mr Lawson said the company welcomed the opportunity to delineate a potentially extensive and high-grade system within 1km of Gascoyne’s operational 2.5 million tonnes per annum processing plant.

“We have designed a number of drill holes at different azimuths to test the orientation and width of the high-grade shear zone mineralisation at Gilbey’s North,” he said.

“We have seen the right signs in onsite chip logging and we are looking forward to receiving the assays from those holes shortly … this could be a significant new development for us.”

Full-year results

Last week, Gascoyne announced the Dalgaranga gold mine had delivered gold production from of 71,153 ounces for the 2022 financial year, which is within its full-year production guidance range of up to 75,000oz.

Gold production of 16,298oz for the June quarter was down on the record of 21,669oz achieved in the three months to March, reflecting the impacts of poor weather and increased COVID-19 absentees amongst its workforce.

“Despite all this, the Dalgaranga operation was able to post a solid quarter of production and achieve full-year guidance, while enjoying considerable near-mine exploration success,” Mr Lawson said.

The company poured 16,597oz of gold and sold 16,882oz in the June quarter, at an average realised price of A$2,620 per ounce (unhedged) to generate over $44 million in revenue.