Gascoyne Resources (ASX:GCY) reports recent ‘exceptional’ visible gold at its Never Never deposit within the Dalgaranga Gold Project in Western Australia could double the extent of the deposit.
Visible gold has been intersected in +40m-wide mineralised zone from diamond drillhole DGDH032, which was designed to intersect the projected down-plunge extension of the Never Never Gold Deposit between 400-500m downhole with a total length of 600m
The company reports that there are already 2 high-grade reverse circulation (RC) drillholes with assays returned outside the Mineral Resource Estimate (MRE) envelope. And now 2 diamond drillholes with logged visible gold in wide mineralised intercepts, down-plunge of that MRE.
While there are no assays being reported, Gascoyne notes it has images of visible gold intercepts in a position considered very likely to be a down-plunge extension to the Never Never Gold Deposit.
As with the visible gold mineralised intercept in DGDH031, sampling and analyses of the mineralised intercept in DGDH032 will be fast-tracked to be included in an updated Never Never MRE scheduled for the December quarter.
Addressing the ongoing works, Gascoyne Resources Managing Director Simon Lawson said: “This exceptional drillhole highlights the huge potential to continue growing the Resource at Never Never.
“This exceptional drillhole highlights the huge potential to continue growing the Resource at Never Never”
We are now looking at the mineralised footprint of Never Never extending from surface to over 380m vertical depth, a down-plunge length of over 500m and potentially double the depth of the recent Resource.
In short, this is a high-grade gold system which extends from surface for over half a kilometre and remains wide open at depth. It is a rapidly expanding high-grade discovery which sits in the shadow of our infrastructure less than one kilometre from our 2.5Mtpa process plant.”
Never Never is a ‘high-grade’ west-striking and steeply plunging lode system that was iscovered as a result of drilling designed to follow up on the wide, high-grade intercepts seen in drilling of the earlier Gilbey’s North extension discovery, located immediately north of the Gilbey’s open pit at Dalgaranga.
The initial MRE of 79,600 ounces for Never Never was released on 8 September.
Gascoyne is a debt-free Australian gold producer which operates the 100% owned Dalgaranga Gold Mine, located in the Murchison region of Western Australia.
The operation is underpinned by a modern, 2.5Mtpa CIL gold processing plant which represents a strategic asset in the district.
Dalgaranga produced over 71,000oz of gold in the 2022 financial year.
While production is currently sourced predominantly from the Gilbey’s and Plymouth open pits, Gascoyne has enjoyed recent considerable near-mine exploration success highlighting the potential to develop new higher grade ore sources within a 1-2km radius of the existing plant.
To this end Initial Mineral Resource Estimates for the newly discovered high-grade Never Never Gold Deposit and lower grade Gilbey’s North Gold Deposit have recently been declared in September 2022.
Write to Adam Orlando at Mining.com.au
Images: Gascoyne Resources Limited
