Gascoyne Resources Ltd (ASX:GCY) has received encouraging drill results from near-mine exploration of the wholly-owned Dalgaranga Gold Project in Western Australia that highlights depth potential at the Plymouth open pit and extensions at Gilbey's North discovery.
Promisingly, the first hole in the reverse circulation (RC) drill program returned 11 metres at 2.75 g/t gold from 89 metres.
The company’s latest exploration developments include positive results immediately below the operating Plymouth open pit and further results from the emerging Gilbey’s North discovery, which is the main source of ore feed at Dalgaranga.
Drilling continues at pace, with two RC rigs undertaking near-mine exploration and mine grade-control drilling across Dalgaranga.
“Significant untapped potential”
Gascoyne managing director and CEO Simon Lawson said: “These latest results demonstrate the significant untapped potential in the near-mine environment at Dalgaranga, with positive new results in close proximity to existing mining areas at both the Plymouth and Gilbey’s open pits.
“With the Gilbey’s North discovery firming up as a very compelling target, and with a number of near-mine targets like Plymouth producing standout results, we are now intently focused on converting these results into potential upgrades to resources, reserves and mine life at Dalgaranga.
“These results really reinforce Gascoyne as an exciting growth opportunity, with solid production and a great processing plant at its core – and an active exploration team delivering new ounces and blue-sky growth potential.
“This is a rare combination that I think investors want to see – a company actively capitalising on its potential.”
Plymouth expansion potential
The Plymouth open pit is less than 1 kilometre from the Dalgaranga processing plant, with drilling in this area targeting potential expansion of the operating pit.
Assay results for the first reverse circulation (RC) hole at Plymouth, DGRC0753, returned a highly encouraging intercept of 11 metres at 2.75 g/t gold from 89 metres.
The intersection is directly down-dip of the main Plymouth ore zone and about 20 metres beneath the floor of the current optimised mine design, indicating the potential to extend the resource at depth.
Operating Plymouth Open Pit with new drill intercept below current design extent.
Near-mine discovery at Gilbey’s North
The emerging Gilbey’s North discovery is less than 1-kilometre west of the 2.5 million tonnes per annum Dalgaranga processing plant.
Initial drilling in this area intersected significant mineralisation with the company now well underway with a follow-up reverse circulation (RC) program utilising two drill rigs.
Assays have now been received for a further 14 RC holes, with eight of these holes intersecting strong mineralisation.
The drilling continues to return highly encouraging intersections, all outside the current mineral resource area:
- 6 metres at 1.6 g/t gold from 91 metres;
- 4 metres at 3.7 g/t from 78 metres, including 1-metre at 11.3 g/t;
- 9 metres at 1.1 g/t from 84 metres;
- 3 metres at 1.1 g/t from 87 metres;
- 8 metres at 1.3 g/t from 111 metres;
- 8 metres at 1.5 g/t from 114 metres;
- 4 metres at 0.9 g/t from 122 metres; and
- 1-metre at 13.1 g/t from 82 metres.
Gilbey’s North gold prospect cross-section 4875mN.
Forward plan
Assays are awaited for further RC holes targeting previously untested shallow extents to the high-grade Plymouth ore zone along-strike and down plunge.
Drilling continues at pace, with two RC rigs undertaking near-mine exploration and mine grade-control drilling across Dalgaranga to the end of February when one rig will temporarily leave the site.
Lawson adds: "We are continuing to see good gold production from our plant through the short month of February, we are making meaningful near-mine shallow discoveries with the potential to become mill feed in the short term and, with plenty of untested targets, our team is just getting started.”