Gascoyne Resources Ltd provides an update on the commissioning and performance test of the new 2.5 Mt/y processing plant and ramp up of operations at its 100% owned Dalgaranga gold project.

Dalgaranga 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 15.3 Mt @ 1.3 g/t Au. The company remains focused not only on ramping up to full production, but also an ongoing aggressive exploration effort aimed at increasing the mine life towards eight to ten years, as well as progressing the Glenburgh gold project, its second +1.0 Moz gold project in Western Australia.

• Design mill throughput rate of 2.5 Mt/y consistently achieved
• Overall process plant availability has exceeded expectations +95% month to date
• Gold recovery of +94% consistently achieved so far in July
• During the plant commissioning, a total of ~7,400 oz have been recovered to date
• Mining ramp up is continuing, with maximum scheduled LOM mining rates expected to be achieved late in the current quarter
• Commercial production expected late in the current quarter or early next quarter
• Delivery into the existing A$1,716 gold hedges has commenced
• Cash balance of A$25.1 million at the end of June.

The 2.5 Mt/y processing plant has now been fully commissioned and a performance test completed to confirm that it meets the design criteria. The test confirmed that all aspects of the processing plant are running at least at nameplate capacity and in many cases better than expected. The performance test showed:

• Crusher throughputs well above design throughput of 360 t/h and up to 450 t/h achieved
• Milling rate of 300 t/h achieved (annualised rate of 2.5 Mt/y) and up to 365 t/h achieved
• Plant availability of 99% during the test (+95% for Month to Date)
• Gold recovery of 94% for duration of test (94.1% Month to Date).