Name and Location
Dalgaranga gold project, Australia.

Client
Gascoyne Resources.

Project Description
Dalgaranga contains a measured, indicated and inferred resource of 23.7-million tonnes grading at 1.4 g/t of gold. Proven and probable reserves are estimated 12.1-million tonnes grading 1.4 g/t of gold.

A prefeasibility study (PFS) completed on Dalgaranga has confirmed it as one of the highest-margin, undeveloped gold projects in Western Australia. The PFS outlines a technically and financially robust project.

The PFS envisages the development of two openpit mines – a single-staged pit at Golden Wings, a four-staged cutback of the existing Gilbeys pit; and new conventional semiautogenous grinding mill circuit, as well as a gravity and carbon-in-leach processing plant, with a throughput of 2.5-million tonnes a year.

The milling and mining schedules indicate an average life-of-mine production rate of 104 000 oz. Peak production of 125 000 oz is expected in the first full year of production, when the higher-grade Golden Wings pit is mined and processed.

The proposed mine has an estimated mine life of six years.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $193-million and an internal rate of return of 90%.

Value
The project has an estimated capital expenditure of $75-million.

Duration
Not stated.

Latest Developments
As a result of the compelling technical and economic outcomes of the PFS, Gascoyne has approved the immediate start of a feasibility study on the project, which is earmarked for completion by the end of 2016, allowing for an investment decision in early 2017.

The project also has significant exploration potential, which could add to the mine life and further enhance the project economics.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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