Gascoyne Resources has produced more than 20,000 ounces at the Dalgaranga gold project in Western Australia’s Murchison region for the third consecutive quarter.
With its December quarter performance at 20,381 ounces, Gascoyne is on track to achieve the upper end of its 2021 financial year production guidance of 70,000 to 80,000 ounces of gold.
During the 2020 calendar year, the company produced 80,086 ounces of gold at the project.
Gascoyne managing director and chief executive officer Richard Hay attributed Dalgaranga’s steady results during recent quarters to transitioning mining from the oxide zone to fresher rock.
“This consistent performance is largely as a result of mining transitioning through the oxide zone into fresh rock in the Gilbey’s pit over the past 18 months,” Hay said.
“Combined with a growing net cash position and a $7.5 million in the money hedge position, Gascoyne is well placed to pursue its growth ambitions.”
In the December quarter, gold ore was sourced entirely from Gilbey’s main zone, with more than 99 per cent of fresh and transitional ore being processed.
Gascoyne is working to secure its future at Dalgaranga, having also completed promising exploration at the Sly Fox and Plymouth deposits during December.
The company unearthed results of 11 metres at 15.7 grams per tonne of gold from 142 kilometres and 12 metres at 3 grams per tonne from 144 metres, including 15 metres at 3.9 grams per tonne at Sly Fox.
At Plymouth, Gascoyne discovered further high-grade intersections of 12 metres at 3 grams per tonne of gold from 141 metres including 6 metres at 4.9 grams per tonne of gold and 18 metres at 1 gram per tonne from 111 metres.
This drilling was undertaken at mining lease targets located within 1.5 kilometres of the Dalgaranga processing plant, in a drill program that aims to extend the current seven-year mine life.
Pending further successful drilling, Sly Fox and Plymouth will become sources of high-grade feed as Gascoyne begins processing lower-grade ore from Gilbey’s pit.