Gascoyne Resources Ltd (ASX:GCY)’s near-mine exploration strategy at its 100%-owned Dalgaranga Gold Project in the Murchison region of Western Australia continues to gather momentum, with strong new results received across multiple existing and emerging prospects.
Follow-up drilling has further expanded the footprint of Gilbey’s North discovery, with another series of shallow high-grade gold intercepts from multiple drill holes.
Further drill testing to evaluate the extent of gold mineralisation at the active Plymouth open pit has also returned additional assays outside the current resource envelope.
Drilling of the Lindville gold prospect, 8 kilometres northeast of the Dalgaranga processing plant, has returned encouraging near-surface assays.
A new JORC 2012 compliant mineral resource estimate (MRE) is underway for the active Plymouth open pit encompassing recent drilling success.
The maiden JORC 2012 MRE for the Archie Rose prospect is also nearing completion and is due for release in the coming weeks.
Further, on the back of strong production in January, February and into March, the current quarter is shaping up to be possibly one of the best on record.
“Real game-changer”
Gascoyne Resources managing director and CEO Simon Lawson said: “Gilbey’s North is shaping up as a real game-changer for the company. These latest results demonstrate the continuity of consistent, thick zones of high-grade gold mineralisation both along strike and at depth – an outstanding result.
“Our smaller capacity rig has been very busy systematically punching close-spaced 54 metres deep holes around the highest grade, thickest shallow mineralisation at Gilbey’s North.
These close-spaced holes will give us confidence in preparations for an initial mineral resource estimate and potential mining scenarios.
RC rig returns
“An RC rig will return on April 1 and resume rapid drill-out of targeted extensions to Gilbey’s North to the north and west and give us further confidence that existing lodes seen in the shorter drill-holes extend to depth.
“This rig will stay tasked with the Gilbey’s North area and beyond for at least three months.
“Moving to the northwest we appear to be moving into an area that was previously targeted by wide-spaced drilling and more specifically into an area of around 200 metres x 200 metres with not one drill-hole in it.
“This is really exciting because our geophysical surveys show the structural demagnetised zone that hosts the entire Gilbey’s deposit and Gilbey’s North prospect also extends into this area.
“In addition to the geophysical support, a review of previous activities shows previous drilling hit the same ‘double-shale’ stratigraphy seen at Gilbey’s and Gilbey’s North, as well as some very interesting gold grades over 1,000 metres northwest at the previously un-named Roku prospect.
"We are looking forward to providing further updates on this developing story in the coming weeks and months.”
The Gilbey’s North target is less than 1 kilometre west of the +2.5 million tonnes per annum Dalgaranga processing plant.
Gilbey’s eastern cutback
Lawson continued: “Following a meeting with the entire geology team on site last week, we have also identified a number of areas in the footwall of the Gilbey’s open pit, including an area called the Gilbey’s eastern cutback and another area to the north that have been mined historically at very high grades.
“There has been very little drilling in these footwall areas to follow up and potentially extend the pit in these areas as access has been restricted due to infrastructure being situated on the footwall as mining focussed on the main Gilbey’s Main Zone.
“We have selected a mobile carrier diamond drill rig, typically seen in underground operations, to drill the footwall targets from inside the pit at Gilbey’s.
“This type of rig has a very small footprint, can reposition itself independently and quickly and can also drill the angles we need.
“A third RC drill rig will also be mobilised to drill the footwall targets from along the eastern pit haul road.
“The potential outcome from drilling of the Gilbey’s footwall area could be as significant as a large-scale eastern wall cutback with a substantial extension to the life of mine plan at Dalgaranga.
Possibly one of best quarters on record
“We want to quickly assess this potential and we are moving aggressively to make it happen.
“In parallel to our strong exploration success, we are maintaining firm focus on producing safe and consistent profitable ounces.
“On the back of strong production in January, February and into March, this quarter is shaping up to be possibly one of the best on record for the company."
Results
Drilling at Gilbey’s North, immediately north of the main operating pit at Dalgaranga, delivered another series of shallow high-grade gold intercepts from multiple drill-holes including:
➢ 9 metres at 1.28 g/t from surface and 29 metres at 1.81 g/t from 16 metres, including 18 metres at 2.52 g/t;
➢ 38 metres at 2.46 g/t from 11 metres, including 20 metres at 4.0 g/t;
➢ 5 metres at 1.58 g/t from 2 metres and 7 metres at 1.87 g/t from 25 metres;
➢ 5 metres at 3.38 g/t from 2 metres, including 2 metres at 7.63 g/t, 17 metres at 2.9 g/t from 10 metres, including 5 metres at 4.63 g/t and 4 metres at 4.58 g/t, and 5 metres at 2.72 g/t from 34 metres and 1-metre at 10.3 g/t from 50 metres;
➢ 3 metres at 1.21 g/t from 2 metres, 1-metre at 4.34 g/t from 22 metres, 11 metres at 1.02 g/t from 28 metres and 24 metres at 3.81 g/t from 102 metres including 9 metres at 8.41 g/t and 10 metres at 1.49 g/t; and
➢ 5 metres at 1.61 g/t from 2 metres.
Drill testing at the active Plymouth Open Pit returned additional assays outside the current resource envelope including:
➢ 4 metres at 5.59 g/t from 56 metres; and
➢ 7 metres at 2.61 g/t from 87 metres, including 4 metres at 4.08 g/t.
Drilling of the Lindville gold prospect returned encouraging near-surface assays including 10 metres at 1.55 g/t from 45 metres, including 5 metres at 2.33 g/t.
Turned a major corner
Lawson added: “We continue to focus on costs and minimising debt, and we will see further benefit to our balance sheet as we move to unlock some of the unrealised value in our non-Murchison assets in the coming weeks.
"It really feels like the company has turned a major corner in the last few months and we intend to continue to work hard to deliver meaningful outcomes for our shareholders.”