Gascoyne records ‘outstanding’ gold assays confirming scale of Never Never deposit, Western Australia

ASX-listed gold company Gascoyne Resources (ASX:GCY) reports it has received ‘exceptional’ new assays that confirm the scale and significance of the Never Never Gold deposit in Western Australia.

The company says Never Never is a ‘high-grade’ gold deposit located within the Dalgaranga Gold Project that strikes and plunges in a southwesterly orientation immediately north of the main Gilbey’s open pit. It also states the deposit was discovered while following up wide, ‘high-grade’ drill intercepts from the earlier Gibley’s North extension discovery.

Significant results recorded include 18.54m @ 17.88g/t Au from 319m including 6m @ 36.2g/t Au in DGRC1150-DT, 27m @ 8.32g/t Au from 342m including 11m @ 13.2g/t Au in DGRC1151, 35m @ 7.67g/t Au from 225m including 10m @ 20.4g/t Au in DGRC1124-DT, and 31m @ 6.46g/t Au from 263m including 17m @ 10.4g/t Au in DGRC1147.

These results follow a suspension of open pit mining and ore processing operations at Dalgaranga on 8 November, transitioning the project to a care and maintenance basis.

Gascoyne Resources Managing Director Simon Lawson says: “Our recent decision to place the Dalgaranga mining operations on care and maintenance was made to preserve the value of what we have, being a near-new 2.5 million tonnes per annum processing plant and associated infrastructure, a strong development pipeline and regional portfolio, and the recently discovered Never Never Gold Deposit… arguably one of the most exciting new high-grade gold discoveries seen in Australia in recent times.

“Gascoyne is in the unique position of drilling out a shallow high-grade gold discovery right in front of a modern 100% owned processing plant”

Gascoyne is in the unique position of drilling out a shallow high-grade gold discovery right in front of a modern 100% owned processing plant. We already have a 300-person camp, airstrip and permitted mining leases. This now makes us an explorer with an established and growing ‘high-grade’ inventory requiring limited capital and a very short timeframe to transition back into being a producer.

Having effectively removed the risks associated with operating in the current inflationary cost environment and extremely tight labour market, we have the opportunity to recast our investment proposition based around a growing high-grade gold discovery located right next to a processing plant, and the opportunity to establish a long-term mine plan capable of delivering robust returns to our shareholders.

As an explorer we have made a very significant high-grade discovery and we are now growing that discovery. As a developer, we have already built and paid for the process plant and infrastructure. And as a miner, we have the ability to leverage off this unique position and return to the ranks of producers when the time is right.

We received approval to mine the Never Never Gold Deposit, ironically just as persistent cost escalation reached a point where we had to make the decision to place the operation into Care and Maintenance and preserve the value of the ounces in the ground, however, this means we will be extremely well placed for a restart decision sometime in the next 18 to 24 months

We aren’t afraid to make the hard decisions, the right decision for our shareholders, to preserve our assets in difficult times, reset and establish a strong mining plan into 2023, and ultimately restart and produce high-margin gold ounces in 2024.

Our team, while smaller now, is focused on delivering resource growth in 2023, pursuing high-grade ounces to put in front of our mill and developing a robust 5 plus year mine plan.”

Since announcing a mineral resource estimate (MRE) for Never Never in September (79,600 ounces), the company has drilled and defined further potential extensions to the resource down plunge beyond 500m and throughout the central and lower areas of the ore body to improve resource classification.

This latest drilling includes several drillholes with visible gold and Gascoyne notes the resource extents remain open at depth.

Gascoyne Resources is an ASX-listed gold mining and exploration company operating in Western Australia. The company’s flagship asset is the Dalgaranga Gold Project located around 65km northwest from Mt Magnet.

Other projects held by the company include the Yalgoo, Glenburgh and Mt Egerton gold projects.

Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.