Construction work at Gascoyne Resources’ 100% Dalgaranga gold project is advancing well on all fronts, with first gold production scheduled for Q2 2018, currently on budget and on time. Harmonised term sheet and mandate letter received from two tier one Australian banks. Final negotiations on the terms are underway and expected to be finalised very soon with a mandate to be awarded shortly thereafter.
The project is located approximately 65 km by road northwest of Mt Magnet in the Murchison gold mining region of Western Australia and covers the majority of the Dalgaranga greenstone belt. After discovery in the early 1990s, the project was developed and from 1996 to 2000 produced 229,000 oz of gold with reported cash costs of less than $350/oz. It contains a Measured, Indicated and Inferred Resource of 31.1 Mt @ 1.3 g/t Au, which is inclusive of Proved and Probable Ore Reserves of 14.3 Mt @ 1.27 g/t Au.
- Engineering and design of the 2.5 Mt/y process plant well advanced – 75% complete
- Bulk earthworks completed
- GR Engineering has mobilised to site, and concrete work has commenced including SAG mill foundations, CIL tank foundations and bunding, and workshop and warehouse foundations
- Installation of the CIL tanks has commenced
- Administration and maintenance office complex installation underway
- Tailings storage facility (TSF) lift and water evaporation pond construction well advanced
- Water bore construction well advanced and dewatering pipeline construction underway
- Access road construction and clearing for the airstrip nearing completion.