ASX-listed Gascoyne Resources has acquired an 80 per cent interest in the Dalgaranga gold project and surrounding exploration tenements in WA.
As part of the agreement, Gascoyne will issue 7 million shares and pay $150,000 to a private vendor.
The company has the option to purchase the remaining 20 per cent of the project if the vendor chooses to exchange it for a 2 per cent net smelter royalty.
Focussed on the delineation of gold and base metal projects in Australia, Gascoyne is currently at an advanced development stage with its Glenburgh project, which is estimated to contain 703,000oz in gold deposits.
The project currently has a JORC-compliant gold resource of 7.5 million tonnes grading of gold 1.58 grams per tonne for 380,000oz, meaning Gascoyne now has a resource base exceeding 1 million ounces of gold.
Chairman Graham Riley said the purchase represented an important step in executing Gascoyne’s growth strategy.
“This is a significant acquisition by the company that fits our exploration model of seeking large tenement holdings with known free-milling gold and the potential to host 1moz deposits where there has been little exploration using modern techniques,” he said.
“Both Glenburgh and Dalgaranga independently hold this potential and together already boast a JORC-compliant resource in excess of 1.08moz.
“At the 100 per cent owned Glenburgh project, where the company is completing a 40,000 metre drill program, this approach has already resulted in an increased and fast-growing resource of over 500,000oz during the past year, and highlights the growth potential this strategy can deliver.”
During the rest of the year, Gascoyne will focus on a feasibility study of the Glengurgh project that will include drilling of the known gold deposits and embark on exploration drilling to define additional targets
“Whilst Glenburgh is more advanced and retains priority, preparations for a significant exploration program at Dalgaranga have already commenced, requiring the compilation of all historical data and the recalculation of the existing gold resource,” Mr Riley said.
The company reported that it viewed the project as an ideal investment, as the surrounding tenements were unencumbered by rehabilitation liabilities from past exploration and were in close proximity to existing and planned infrastructure.