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 a 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
Subject to the satisfaction of the conditions, the Dalgaranga project is scheduled to start ore commissioning in the second quarter of 2018.

Latest Developments
Gascoyne Resources has signed a letter of intent (LoI) with engineering firm GR Engineering Services for an engineering, procurement and construction contract for a 2.5-million-tonne-a-year mineral processing plant at the Dalgaranga gold project.

Gascoyne MD Mike Dunbar has said that the board has decided to further derisk the Dalgaranga development by moving to a guaranteed maximum price (GMP) style of implementation.

The award of the contract is subject to final board approvals, the receipt of statutory approvals, financing and the finalisation of terms and conditions for the contract. 
Meanwhile, Gascoyne Resources has successfully raised A$55-million to fund the development of the project.

The capital raise was launched in February this year and completed over two tranches.

MD Mike Dunbar has said that, with fundraising now complete, the company is looking forward to developing the Dalgaranga project and exploring its other gold projects.

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.