Gascoyne Resources’ Mining Proposal for the Dalgaranga Gold Project in Western Australia has been approved by the State Government, marking the commencement for the mining of the higher-grade Never Never and Gilbey’s North deposits.
The Western Australian Department of Mining, Industry Regulation & Safety (DMIRS) approved the mining proposal, which also means the extension of the mining footprint of Gilbey’s East deposit.
With this approval in place, Gascoyne expects to commence mining of these areas in November, with first ore expected to be accessed shortly after the commencement.
Since their recent discovery, the high-grade Never Never and Gilbey’s North deposits have become a key target for Gascoyne, supporting its plan to mine higher-grade ore sources to increase the overall head grade at Dalgaranga.
The deposits have an initial Mineral Resource Estimate (MRE) of 1.43Mt at 2.32g/t gold for 107,200 oz and an Ore Reserve of 0.38Mt at 1.63g/t gold for 20,000 oz.
Gascoyne’s recent drilling has delivered numerous high-grade intercepts outside the Resource and Reserve envelopes, indicating outstanding potential for significant ongoing growth. These were 12m at 34.5g/t gold and 26m at 10.27g/t at Never Never
An updated MRE for the Never Never deposit is scheduled for release in the December 2022 Quarter.
In addition to mining of the Never Never, Gilbey’s North and Gilbey’s East deposits, the approval also covers:
- The construction of the initial lift of the Golden Wings Tails Storage Facility
- An increase to the height of the existing waste dumps to 40m
- Additional storage capacity for Potentially Acid Forming waste
The Dalgaranga Gold Project is the flagship project for the company and is the single source of gold production for the company at this stage.
