Gascoyne Resources has purchased a new tenement immediately north of its $86 million Dalgaranga gold project in Western Australia called the Greencock gold prospect.
The prospect, located 7.5km from the Dalgaranga mill, is a historic site that has not been drilled for 17 years. Gascoyne paid $100,000, and a six- and 12-month escrow of 475,000 company shares (950,000 shares total) to a private prospector for the site.
Historical drilling at the Greencock prospect has returned promising results, not just for gold but also some silver as well as base metals, including zinc, copper and lead. Further targets have identified areas of prospective pegmatite-hosted lithium, tin and tantalum.
The high-margin Dalgaranga project has JORC measured, indicated and inferred resources of 31.1 million tonnes at 1.3 grams of gold per tonne (1.32 million ounces total) and a proved and probable reserved of over 581,000 ounces. Last week, the company secured $60 million of tier-one joint funding from CBA and NAB to the tune of $30 million each.
Dalgaranga is the flagship project of Gascoyne Resources in WA, alongside the company’s Glenburgh and Egerton projects, with first gold production of course for the second quarter of 2018.