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.

The openpit operation is expected to produce 623 000 oz of gold over the six-year mine life, instead of the previous estimate of 580 000 oz, with some 244 000 oz to be recovered in the first two years of operation. The updated mine plan resulted from a 110 000 oz increase in the mineral resource, announced in March this year, which increased to 27.6-million tonnes, grading 1.3 g/t gold for 1.13-million ounces of contained gold.

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
The project is scheduled to start ore commissioning in the second quarter of 2018.

Latest Developments
Construction of the project is continuing apace, with first gold production still targeted for the second quarter of 2018.

Design and engineering of the 2.5-million-tonne-a-year processing plant is some 60% completed, and project house GR Engineering has mobilised to site to start construction. The bulk earthworks required for the site are also well advanced, and scheduled for completion in late August, allowing GR Engineering access to the site for plant construction.

Gascoyne awarded the A$66.5-million engineering, procurement and construction contract (EPC) to GR Engineering in July.

Key Contracts and Suppliers
GR Engineering (EPC).

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.