Gascoyne Resources Ltd (ASX:GCY) has uncovered at least two consistent, wide zones of high-grade gold mineralisation at Gilbey’s North prospect of the Dalgaranga Gold Project in Western Australia, positioning the company well for an upcoming maiden mineral resource estimate.
The company was following up an intersection of 54 metres at 6.55 g/t from 116 metres downhole when it discovered the gold zones, which appear to be forming into two distinct wall zones – a north-striking footwall zone (FW) and a west-striking hanging wall zone (HW).
New results of up to 53 metres at 3.59 g/t gold from 71 metres including 9 metres at 6.8 g/t and 6 metres at 6.6 g/t gold in HW hole DGRC0957 have been described by the company as potentially game-changing.
Investors have demonstrated their approval, sending shares as much as 14.64% higher to $0.235.
Other results include:
- 31 metres at 1.24 g/t gold from 68 metres and 8 metres at 16.5 g/t from 124 metres including 1-metre at 72.8 g/t in HW;
- 33 metres at 2.89 g/t from 21 metres including 6 metres at 8.3 g/t in HW;
- 18 metres at 1.36 g/t from 132 metres in FW;
- 23 metres at 1.37 g/t from 145 metres in FW; and
- 12 metres at 6.11 g/t from 102 metres in FW.
In addition to these new zones, follow-up drilling to the northwest and south of drill hole DGRC0971 returned more high-grade results:
- 20 metres at 7.24 g/t gold from 73 metres including 1-metre at 47.9 g/t and 5 metres at 9.3 g/t, drilled 25 metres to the south; and
- 16 metres at 9.06 g/t from 74 metres, including 3 metres at 40.7 g/t, and 18 metres at 3.0 g/t from 155 metres, drilled 50 metres northwest.
“Could be a significant new development”
“These latest outstanding infill results at Gilbey’s North continue to illustrate the substantial nature of the gold mineralisation that we have discovered right on the edge of our main operating pit at Dalgaranga,” Gascoyne Resources managing director and CEO Simon Lawson said.
“Importantly, recent drilling has revealed that the shallow high-grade mineralisation extends from surface in two different directions and is starting to show signs that the regional potential could be much bigger than even we could have imagined.”
Cross-section through follow-up reverse circulation (RC) drill holes at the Gilbey’s North prospect. Note the distinction of hangwall and footwall zones.
“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,” Lawson continued.
“In saying that, I have worked in those types of gold systems almost my entire career so the implications of defining that style of deposit has the entire technical team pretty excited."
"Possibly extensive system"
“The opportunity to delineate a potentially extensive and high-grade system within 1 kilometre of our efficient and operational +2.5 million tonnes per annum processing plant is an exceptional opportunity,” Lawson explained.
“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.
“We have seen the right signs in on-site chip logging of these drill holes and we are looking forward to receiving the assays from those holes shortly. This could be a significant new development for us.
“We are learning more as we drill each hole and we are very excited to be mapping out a bright new future for Gascoyne shareholders.
“Our focus remains simple – continue to deliver consistent production while exploring aggressively to find more higher-grade gold close to the mill.
“We are well placed with the right team, the right assets and the right attitude for success.”