Its shares leapt sharply in response.
The company has recently focused its rigs to the north, to better understand a westerly-striking extension of Gilbey’s North prospect, and has returned a new record hit in what is now being called the Never Never lode: 59m at 12.5 grams per tonne from 139m, including 13m at 51.1gpt.
That’s about the same depth as a hit of 54m at 6.55gpt from 116m, the previous site record, but intersects the lode at a 90-degree angle confirming the consistent width, orientation and tenor of the discovery. Other drilling has confirmed the mineralisation is at least 30m deeper, and open at depth.
Another intercept released this morning was returning 39m at 3.09gpt from 99m, over 20m at 1.12gpt from 136m.
Gascoyne managing director Simon Lawson described the results as “exceptional” when compared to the Western Australian gold sector’s usual results.
“Finding a northerly extension to the main Gilbey’s system was itself a major discovery coup for Gascoyne earlier this year. Being situated right in front of the mill, and at a time when the company and its loyal investors needed some vision for the future, our team and our aggressive drilling strategy came through,” he said.
“To then back that up and discover a completely different style of consistently thick and very high-grade gold mineralisation in the Never Never Lode – an orebody style that has immense potential – is a remarkable achievement by our exploration team and has the potential to reshape our future very quickly.”
The lode, on the western edge of the Gilbey’s North discovery, runs east-west, roughly at right angles to the predominantly north-south orientation of most of the known deposits, and is a new style of mineralisation.
An updated resource for the Dalgaranga project, which will include a maiden estimate for Gilbey’s North, is due later this month. It was discovered just eight months ago.
Drilling continues at Dalgaranga, including the “dark horse” targets of Gilbey’s East and South, and the Plymouth and Sly Fox pits.
Gascoyne shares have traded at 20-48.5c over the past year.
