Gold developer Gascoyne Resources has released an update on its Dalgaranga gold project in the Murchison region of Western Australia, saying it is ahead of schedule by a month.
While the company’s feasibility study (FS), released last November, predicted a start date late in the June quarter of 2018, the company now expects to hit first gold within the next three months (May 2018).
Construction of the project’s airstrip — primarily for the accomodation of FIFO charter planes to populate an adjacent 240-person village — is nearing completion, while generators for the project’s power station and LNG storage tank are expected for delivery in March. First gas at the latter development is currently on schedule for mid-April.
The low-cost, high-margin Dalgaranga project is one of the most promising new mines in construction in WA at the moment, with a JORC measured, indicated and inferred resource of 31.1 million tonnes (Mt) at 1.3 gram of gold per tonne (g/t AU) — 1.32 million ounces (oz) of gold overall. This figure also includes proved and probable reserves of 15.3Mt at 1.3 g/t Au for 612,000oz.
In addition to the Dalgaranga project, Gascoyne is noted for its Glenburgh and Egerton projects, which are in the Gascoyne region of WA. In October last year, Gascoyne entered into a $300 million deal with contractor NRW Holdings, part-funded by a $60 million loan from the Commonwealth Bank of Australia (CBA) and National Bank of Australia (NAB) secured at the end of last year.