Name of the Project
Dalgaranga gold project.

Location
The project is located in the Dalgaranga greenstone belt, in the Murchison province of Western Australia.

Client
Gascoyne Resources.

Project Description
A feasibility study on Dalgaranga has confirmed the project as one of the highest-margin undeveloped gold deposits in Australia.

The project contains Joint Ore Reserves Committee-compliant measured, indicated and inferred resources of 25.7-million tonnes grading 1.4 g/t gold for 1.12-million ounces of contained gold. Proven and probable ore reserves have been estimated at 14.1-million tonnes grading 1.31 g/t gold for 552 000 oz gold.

The project comprises two opencut mines, a new conventional semiautogenous milling circuit, and a gravity and carbon-in-leach processing plant with a throughput capacity of 2.5-million tonnes a year. It has an initial mine life of six years.

The processing plant will be located adjacent to the existing waste dump, to the east of the Gilbeys openpit to minimise mine haulage costs.

The plant design comprises primary crushing, crushed ore stockpile, grinding and classification, gravity recovery, leaching and adsorption, elution and electrowinning, as well as smelting.

This initial mine plan excludes the recently discovered Gilbeys South prospect, which has defined an extension of 550 m to the south of the Gilbeys deposit. The Gilbeys South prospect potential has not been included in the current mine plan or feasibility study.

The feasibility study has indicated that the project can produce 100 000 oz/y for an initial six-year period. The first two years have slightly higher production of 105 100 oz/y, as a result of the mining and processing of the higher-grade Golden Wings deposit early in the mine life.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$177-million and internal rate of return of 65% based on a A$1 600/oz gold price, with a payback of 18 months.

Value
Preproduction capital costs for the processing plant and associated infrastructure are estimated at A$86-million, including contingencies of $6.1-million.

Duration
Gold production has been targeted for the first quarter of 2018.

Latest Developments
The Gascoyne board has approved the feasibility study and, subject to obtaining a suitable financing arrangement, has approved the project to proceed to construction.

It is expected that construction will start as soon as financing has been completed.

Further opportunities to expand the project exist, in particular from ongoing exploration at the Gilbeys South prospect.

A 550 m southern strike extension to the Gilbeys deposit has been discovered, in addition to other regional prospects, which the company continues to drill.

To date, none of the mineralisation at Gilbeys South has been included in the initial life-of-mine at Dalgaranga.

An aggressive exploration effort will continue at the project to further enhance the already robust project, and there will be further opportunity to optimise the mine plan to reflect growth in resources from areas such as Gilbeys South.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Gascogne Resources, tel +61 8 9481 3434, fax +61 8 9481 0411 or email admin@gascoyneresources.com.au.