Here’s part of the story from Share Cafe article published...

Here’s part of the story from Share Cafe article published October  19

https://www.sharecafe.com.au/2018/10/19/dalgaranga-ramp-up-underlines-gascoyne-resources-potential/

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“Latest Activity

Mining rates had been lower than expected largely due to delays with site establishment, machine availability, weather events and some unplanned additional blasting required for near-surface hardpan material.

In addition, with the plant construction well ahead of schedule, the ore schedule was adjusted to facilitate early commissioning, necessitating the use of lower-grade material thang originally proposed.

On a positive note however, broken ore stocks are now at the required levels and scheduled mining rates have increased to 55,000bcm/day – which is approaching the company’s 60,000bcm/day target.

Some additional drill and blast were required for some of the laterite caps, but mining is now moving as per plan into some softer ore at Golden Wings.

Further good news relates to the performance of the CIL processing plant, which continues to operate above design capacity. The plant has progressed well through commissioning (six weeks ahead of schedule) and is now expected to be operating above nameplate design of 2.5Mtpa. Gold recoveries and plant availability continue to improve, with both currently well in excess of 90%. Commissioning grades have also now risen towards LOM (life-of-mine) levels through 1g/t Au towards 1.3g/t Au, with cyanide reagent use currently lower than plan.”.....

Technical Significance

Dalgaranga plant performance is impressive and is the biggest achievement so far. It’s also now encouraging to see mine performance improving. The key for GCY is to be able to demonstrate stable, steady-state gold production for consecutive quarters (beginning with Q4 2018).Production continues to ramp-up towards the targeted 100,000 oz p.a. mark, with GCY providing Q4 2018 production guidance of 25,000 oz at an AISC range of A$1,250-1,350/oz. GCY forecasts production of 105,000 oz – 115,000 oz at an AISC of A$1,200-1,300/oz for CY 2019. Based on current spot gold prices, this suggests solid margins of +$400/oz, generating +A$40M in operating cashflows.A crucial factor in GCY achieving its production targets will be its ability to ensure appropriate ore grades, which it needs to approximate LOM averages. An average mill head grade of 1.1g/t Au is forecast for the Q4 2018, which represents a 38% increase on Q3 2018 grades. A major factor helping GCY to achieve its budgeted ore grades is the fact that all three open-pits at Dalgaranga – Sly Fox, Golden Wings and Gilbeys South – are now supplying ore to the mill, with mining rates within 10% of scheduled rates.“

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“...lower-than-normal capital and operating costs – including the very soft nature of the ore, excellent metallurgical recoveries, rapid leaching and very low reagent consumptions. Simultaneously, ongoing exploration drilling continues to enhance the resource picture. Dalgaranga provides GCY with a relatively low-capex starter project that will allow it to leverage into its +1Moz Glenburgh project in WA’s Gascoyne region.

Both the Dalgaranga and Glenburgh projects in combination would see GCY with a potential production profile of +150,000 oz p.a. The key will be for GCY to establish solid steady-state production.”.......