DALGARANGA PRE-FEASIBILITY CONFIRMS EXCEPTIONAL PROJECT ECONOMICS; FEASIBILITY STUDY HAS COMMENCED
Gascoyne Resources Limited (“Gascoyne” or “Company”) (ASX:GCY) is pleased to announce the completion of the Pre-Feasibility Study for the Company’s 80% owned Dalgaranga Gold Project in the Murchison region of Western Australia. The Dalgaranga Gold Project contains a Measured, Indicated and Inferred Resource of 23.7 Mt @ 1.4 g/t gold for 1.05Moz of contained gold (see Figure 1&2). The PFS has assumed the Company owns 100% of the project, with its current joint venture partner assumed to convert its 20% interest to a 2% NSR royalty, which has been included in the AISC and financial assessments. The PFS substaintially improves upon the previous assessments of the project and is based on historical production records as well as studies completed by a number of independent consultants to the Company, including RungePincockMinarco (resource), CSA Global (mining and reserve) and Mintrex (process engineering, operating and capital costs)
Summary:
- PFS outlines a technically and financially robust project with an initial life of mine (LOM) undiscounted pre-tax operating cash surplus of A$360 million from revenue of A$832 million
- Development based on two open cut mines, and a new conventional SAG milling circuit, gravity and carbon in leach processing plant with a throughput of 2.5Mtpa
- Estimated LOM Operating Cash Cost (C1) of A$836/oz
- Estimated LOM all in sustaining cost (AISC) of A$913/oz
- Low pre-production Capital Cost of A$75 million (including 15% contingencies) – payback within 12 months of production
- Production of 125,000oz in first full year, (LOM average of 104,000ozpa)
- 547,000 ounces within the initial mine plan (12.1Mt @ 1.4 g/t gold), with exceptional potential for Resource growth
- Initial Proved and Probable Ore
SOURCE: GASCOYNE RESOURCES LIMITED
DATE: MARCH 31, 2016
