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
The project contains an updated mineral resource of 31.1-million tonnes grading 1.3 g/t, and includes an updated proven and probable mineral reserve of 14.3-million tonnes grading 1.27 g/t. 

The updated mine plan excludes the Sly Fox mineral resource of 77 000 oz, which is expected to improve the production profile in years 3 and 4.

As a result of the updated mineral resource announced in March, the mine plan, design and schedule have been updated to align production with the increased throughput rate that modelling has shown to be achievable, while soft oxide and transitional ore will be processed in the early years.

The project comprises two opencut mines, a new conventional semiautogenous (SAG) milling circuit and a gravity and carbon-in-leach (CIL) processing plant with a throughput capacity of 2.5-million tonnes a year.

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 new mine design for the Gilbeys deposit has resulted in the Dalgaranga production target being increased to 15.3-million tonnes grading 1.3 g/t gold for 623 000 oz within the deposit, including the Gilbeys South and Golden Wings openpits.

As a result of the revised mine design and schedule, along with the increased throughput in the early years of the operation, a revised production target has been developed. The new production schedule will result in the project producing 244 000 oz in the first two years of operation, representing an increase of more than 35 000 oz in that time, compared with the production envisioned in the feasibility study mine schedule, and is expected to improve project economics significantly.

The project has an initial mine life of six years.

Potential Job Creation
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 an 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 Dalgaranga project was scheduled to start ore commissioning in May 2018, but started gold production ahead of target in March 2018.

Latest Developments
The Dalgaranga gold project remains one month ahead of schedule, with the project due to start gold production in May.

Construction of the process plant is 98% complete, with mining under way at the Golden Wings, Sly Fox and Gilbeys pits.

Ore is being stockpiled on the run-of-mine pad in preparation for processing in May.

At full production, the project is expected to produce about 100 000 oz/y of gold over a mine life of six years.

Key Contracts and Suppliers
GR Engineering (processing plant) and Zenith Energy (gas-fired power station).

On Budget and on Time?
Construction of the Dalgaranga gold project is on budget and ahead of schedule, with first gold expected in May.

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