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Gascoyne Resources continues to ramp up Dalgaranga Gold Project operations

Published: 22:36 24 Jul 2018 EDT

Dalgaranga processing plant
Dalgaranga processing plant

Gascoyne Resources Ltd (ASX:GCY) has fully commissioned the 2.5 million tonnes per annum (mtpa) processing plant and completed a performance test at its Dalgaranga Gold Project in Western Australia.

The test confirmed that all aspects of the processing plant are running at least at nameplate capacity and in many cases better than expected. Key aspects include:

• Design mill throughput rate of 2.5 mtpa consistently achieved;
• Overall process plant availability has exceeded expectations +95% month to date; and
• Gold Recovery of +94% consistently achieved so far in July.

Importantly, a total of about 7,400 ounces have been recovered to date during the process plant commissioning.

Dalgaranga gold pour

The mining ramp up is continuing, with total monthly movement rates for June of around 1.4 million cubic metres achieved, with the rates expected to increase to around 1.9 million cubic metres per month from late in the current quarter.

Once the mining rate has increased, it is expected that commercial production will be declared.

Dalgaranga Gold Project layout

With the start of production, Gascoyne has commenced selling gold into the existing hedge program.

The current hedge position is about 176,000 ounces at an average forward price of A$1,716/ounce.

Gascoyne is well funded with a cash balance of A$25.1 million as at the end of June 2018.

Forward plan

Dalgaranga has a proved and probable ore reserve of 15.3 million tonnes at 1.3 g/t gold for 612,000 ounces of gold.

Gascoyne remains focused not only on ramping up to full production, but also an ongoing aggressive exploration effort aimed at increasing the mine life towards 8-10 years.

The company is also progressing the Glenburgh Gold Project, its second +1 million ounce gold project in Western Australia.

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