Gascoyne Gilbey's North Au proj WA

Gascoyne Resources extends Gilbey’s North ‘high-grade’ zone with ‘stunning’ new intercept

Gascoyne Resources (ASX:GCY) has received ‘standout’ new drill intercepts from ongoing resource drilling at the Gilbey’s North prospect, located less than 1km from the 2.5Mtpa processing plant at its 100% owned Dalgaranga Gold Operations.

Of particular significance is the ‘standout’ intercept in DGRC1026, which has confirmed a significant down-dip extension of the record intercept of 54m at 6.55g/t Au from 116m including 12m at 20.1g/t reported in DGRC0971.

The company reports the ‘significant’ results further confirm the consistent width and continuity of the mineral system at Gilbey’s North near-mine discovery, delineating extensions both down-dip and up-dip of recently reported high-grade intercepts.

Gascoyne notes that ongoing drilling across Gilbey’s North, East and South, as well as Plymouth, Sly Fox and other near-mine targets forms part of the overall strategy to grow resources and ore reserves and extend the mine life at Dalgaranga in Western Australia.

The company’s share price was up 5.102% to $0.257 as of 8.40am AWST.

Addressing the results, Gascoyne Resources Managing Director Simon Lawson said: “Our strategy to extend the mine life at Dalgaranga is well on track. We engaged our people to help define our future and we made a significant discovery with the drilling of the northerly extension to the Gilbey’s system earlier this year.

“Our strategy to extend the mine life at Dalgaranga is well on track”

What we initially discovered was a high-grade, relatively narrow extension to the “G-Fin” lode system seen in the northern end of the main Gilbey’s pit. This was a significant discovery and showed us that Dalgaranga has a lot more to offer than some may have believed.

As we systematically drilled further north on the G-Fin extension we also drilled through what appeared to be a hanging-wall mineralised zone which we initially thought may run parallel to the trend of the main kilometre-long northerly-striking Gilbey’s mine sequence.

Further drilling of this hanging wall zone shows that it actually strikes at almost right angles, or east-west, to the strike of the initial north-south footwall or G-Fin extension discovery. As a result, we have just drilled seven new holes north-south to assist in defining the potential true width and extent of this new system.

Given the consistently high-grade of the east-west mineralised zone, it is imperative that we understand the potential volume of this new mineralised zone as it will have a significant impact on our initial Mineral Resource Estimate for Gilbey’s North.”

Gascoyne notes that it believes it is seeing a regional-scale east-west fault system interacting with the typically stratigraphic-hosted north-south Gilbey’s mineralised system.

The company adds that the intersection point between the east-west structural plane and the north-striking stratigraphic host, otherwise known as an ‘intersection lineation’ creates a broad damage zone where gold has precipitated and/or been remobilised and enriched in this area.

Proving the intersection lineation model is an important development for the company as it has seen a number of smaller offsets throughout the main Gilbey’s mine sequence that may represent similar opportunities.

Regionally there are also a number of existing high-grade prospects that appear to line up with Gascoyne’s structural projections and may prove to be part of the same mineralisation model.

Assay results from recent drilling in the Gilbey’s Eastern Footwall and Gilbey’s South are currently being collated and interpreted, and Gascoyne expects to be able to release these results in the next 3-4 days.

Images: Gascoyne Resources Limited
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Written By Adam Orlando Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.