Gascoyne Resources strikes bonanza gold grades in first RC drilling at Tanqueray prospect
12:59 19 Sep 2018
“Shares up 31% as the company hits up to 987 g/t gold from prospect close to operating Dalgaranga project.
“Gascoyne Resources Ltd (ASX:GCY) surged 31% after receiving bonanza-grade results of up to 987 g/t gold in the first reverse circulation (RC) drilling at Tanqueray prospect of the Dalgaranga Gold Project in WA.
The 3-metre interval was within a broader 8-metre intersection at 373.5 g/t from 53 metres.
Gold grades of up to 1,450 g/t, or 46.6 ounces per tonne, were returned within the 8-metre zone of visible gold mineralisation.
Gascoyne’s managing director Mike Dunbar said, “We are pleased to have discovered a zone of ultra-high-grade gold mineralisation at Dalgaranga.
“These are by far the highest gold grades ever identified at Dalgaranga and highlight the potential for a completely different style of mineralisation to the known 1.3 million ounce resource, which is being mined only 1.8 kilometres south of Tanqueray.”
Project locations in the Gascoyne and Murchison regions.
Two RC holes drilled
Only two RC holes have been drilled at the prospect which has only had limited very wide spaced aircore drilling completed in the past.
The initial two-hole program was designed to test an historical aircore anomaly.
Follow-up planned
Gascoyne is planning follow-up drilling to determine the significance and potential of the area and of this ultra-high-grade gold mineralisation.
The mineralisation contains very coarse visible gold within a quartz-rich clay zone.
Ramping up towards commercial production
Tanqueray is only 1.8 kilometres northwest of Gascoyne’s processing plant at Dalgaranga, which is being ramped-up towards commercial production.
Dunbar said, “While the full significance of the discovery is yet to be fully understood, it is clear that the potential of the Dalgaranga greenstone belt, which is around 90% held by Gascoyne, is yet to be fully appreciated.
“We look forward to undertaking the follow-up drilling as soon as practicable while remaining focused on the ramp-up to commercial production of the current mining operations.”
After discovery in the early 1990s, the project was developed and from 1996 to 2000 produced 229,000 ounces of gold with reported cash costs of less than $350/ounce.
The project contains a JORC-compliant measured, indicated and inferred resource of 31.1 million tonnes at 1.3 g/t for 1.32 million ounces of contained gold.
Within this is a proved and probable ore reserve of 612,000 ounces.
Gascoyne remains focused not only on ramping up to full production, but also an ongoing aggressive exploration effort aimed at increasing the mine life towards 8-10 years.”
