Name of the Project
Dalgaranga gold project.

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

Project Owner/s
Gold miner Gascoyne Resources.

Project Description
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.

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’s producing 244 000 oz in the first two years of operation, representing an increase of more than 35 000 oz during that time, compared with the production envisioned in the feasibility study mine schedule, and is expected to improve project economics significantly.

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.

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

Planned Start/End Date
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 Western Australian Department of Mining, Industry Regulation and Safety has approved gold miner Gascoyne Resources' updated mining proposal for its Dalgaranga gold project, clearing the way for mining at the higher-grade Never Never and Gilbey’s North deposits.

The approval also covers the construction of an initial lift of the Golden Wings tailings storage facility, as well as an increase in the height of the existing waste dumps and in additional storage capacity for potentially acid-forming waste.

Gascoyne has said the approval supports the plan to target higher-grade ore sources and increase the head grade at Dalgaranga, with mining at the two deposits expected to start in November.

The two deposits have an initial mineral resource estimate of 1.43-million tonnes at 2.32 g/t gold for 107 200 oz and an ore reserve of 0.38-million tonnes at 1.63 g/t gold for 20 000 oz. An upgraded mineral resource estimate for Never Never is due in the December quarter.

Production at Galgaranga is sourced from the Gilbey’s and Plymouth openpits.

The project produced 71 000 oz of gold in the 2022 financial year.

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

The project is six weeks ahead of schedule, with the project also coming in under budget.

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