Gascoyne Resources Ltd (ASX:GCY) has delivered a “breakthrough result” of 54 metres at 6.55 g/t gold, including 12 metres at 20.1 g/t, confirming the scale and potential of Gilbey’s North discovery within the Dalgaranga Gold Project in Western Australia.
Ongoing resource drilling at Gilbey’s North has confirmed the presence of deeper and materially higher-grade material while also highlighting the consistent width and continuity of the mineralised system at this emerging near-mine discovery.
Together with ongoing drilling to define consistent shallow mineralisation in the footwall of the Gilbey’s open pit, this work forms part of the company's strategy to grow mineral resources and ore reserves and extend the mine life at Dalgaranga.
Shares have traded higher, up as much as 19.6% on the previous close to $0.275 intraday.
“Exciting near-mine discovery”
Gascoyne managing director and CEO Simon Lawson said: “This is a breakthrough result which significantly elevates the importance of this exciting near-mine discovery.
“The latest drill-hole has returned a composite intercept of six times our current head-grade at Dalgaranga over a 54-metre interval – a truly impressive result coming from a growing area of shallow high-grade mineralisation located within 1,000 metres of our +2.5 million tonnes per annum processing plant.
“Our geology and mining teams are working closely with external consultants to deliver an initial mineral resource estimate (MRE) for Gilbey’s North, as well as to provide models for pit optimisation scenarios and potential mine schedules.
“In light of recent industry-wide delays in assay turnaround times, we are revising the timing of the initial MRE for Gilbey’s North towards the end of July 2022.
“I am very much looking forward to renaming the Gilbey’s North prospect as a deposit with the release of the impending MRE.
“I am also confident that the shallow high-grade gold we have discovered across the area just to the north of the operating Gilbey’s open-pit represents a significant milestone for the Dalgaranga Gold Project.
"Importantly, the naming of the new deposit – following on from what was already an amazing discovery – is a fitting tribute to the purposeful alignment and stellar efforts of the entire team across the Gascoyne organisation.”
Plan view showing the location of RC drill-hole DGRC0971, current mineralisation and the location of other nearby holes with assays pending.
Forward plan
Gascoyne's follow-up drilling continues at Gilbey’s North with two reverse circulation rigs operating.
Assay turnaround continues to be heavily impacted by industry-wide delays from staffing shortages. Consequently, assays are awaited from more than 100 drill holes, including up-dip of these intersections.
There is strong initial progress with the drill-out of the Gilbey’s Eastern Footwall targets within the current pit, with work continuing in this area.
A third RC drill rig is continuing to drill at Plymouth and Gilbey’s South as well as testing several additional near-mine targets identified through an ongoing geological review.