Explorer cements firm growth for Murchison gold project

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 15 Oct 2013   Posted by admin


WA gold company Gascoyne Resources has published high grade indicated and inferred JORC resource results for its Golden Wings prospect in the Murchison region of WA, just days after obtaining formal mining approval for the wider Dalgaranga gold project.
Golden Wings – one of the most northerly prospects within Gascoyne’s Dalgaranga gold project – has an initial combined indicated and inferred estimate of 450,000t of ore grading 3.7 grams per tonne of gold, to produce 54,000oz of gold when mined to a 2.0g/t cut-off, as estimated by independent consultants Elemental Geology.
While modest in size, the shallow, high-grade nature of the deposit and its proximity to existing infrastructure is thought to provide an excellent opportunity for a highly profitable open pit gold mine.
The current definition of the deposit extends for more than 400m east from surface outcropping, and remains open at depth. An existing haul road and a number of gold processing facilities in the region are anticipated to ensure low capital expenditure for project development.
Golden Wings’ results from the 10,000m drill program were announced shortly after the company confirmed its official approval to mine Dalgaranga. Within its 16.5 square kilometre area, Dalgaranga covers Golden Wings as a deposit of interest, as well as the project’s primary deposit, Gilbeys, and six other historical prospects. The mining lease is currently valid for a 21-year term.
Gascoyne chairman Michael Joyce said Dalgaranga’s progress would likely have a positive, ripple-effect on Gascoyne’s other mining efforts in the Murchison region.
“This is a positive step towards short term cash flow for Gascoyne,” Mr Joyce said. “The grant of the Dalgaranga mining lease and the proximity to existing mills puts the Dalgaranga project now ahead of the company’s flagship 1 million ounce Glenburgh project on the critical path to development, and opens up the possibility of cash flow from Dalgaranga being applied to building the larger Glenburgh project.”