Tembo Capital, a resources-focused private equity fund with a successful track record of global investments in mining companies, has agreed to make a cornerstone $21.3 million investment in Gascoyne
Gascoyne to expand the Never Never gold deposit. (Credit: Michael Gaida from Pixabay)
Gascoyne Resources Limited (“Gascoyne” or the “Company”) (ASX: GCY) is pleased to announce a $50 million funding package to further delineate and expand the high-grade Never Never gold deposit and progress an updated long-term operating plan for its 100%-owned Dalgaranga Gold Project in Western Australia.
Following the decision to place the Dalgaranga mining operations on care & maintenance in November 2022, the Company has worked expeditiously to develop an updated operating plan focused on the transformational Never Never discovery, which is located immediately adjacent to the Dalgaranga mill.
Following assessment of the outstanding exploration results to date, Gascoyne has developed an 18-month exploration and strategic plan targeting4:
• A +300koz Au Reserve at a grade exceeding 4.0g/t at Never Never;
• A +600koz Au Resource at a grade exceeding 5.0g/t at Never Never; and
• The development of a 5-year mine plan aimed at delivering 130-150koz per annum.
This updated strategy is centred around an aggressive exploration programme at Never Never, comprising extensive reserve definition, resource expansion and near-mine exploration drilling targeting Never Never “look-alikes”.
Gascoyne also plans to undertake the development of an underground exploration drill drive, planned to commence in mid-2023. Underground drill platforms will be utilised for Never Never underground reserve drilling, in addition to testing depth extensions of the deposit below the current Mineral Resource Estimate (“MRE”).
The drill drive will also provide eventual underground mine access and ventilation infrastructure as the Company moves back into production.
In parallel with the Company’s planned exploration program, Gascoyne is progressing permitting and evaluation of the satellite Yalgoo Project, which is expected to provide an important source of ore feed to supplement the high-grade ore from Never Never.
Gascoyne anticipates regularly updating the MRE at Never Never approximately every six months, with the objective of ultimately delivering a maiden Never Never Ore Reserve, comprising both an open pit and underground component, in the first half of 2024.
Gascoyne Resources Managing Director and CEO, Mr Simon Lawson, said: “This multi-pronged $50 million funding package – which is underpinned by the highly respected global resources private equity fund Tembo Capital and our supportive major shareholder, Delphi – will put Gascoyne in a unique position in the Australian gold sector.
“It follows the operational reset which we successfully implemented at the Dalgaranga gold mine last year and will give us the balance sheet capability to unlock the value of our key assets – the exciting highgrade Never Never gold deposit and our high-quality infrastructure at Dalgaranga.
“Having ownership of a fully operational gold processing plant at Dalgaranga along with the recent discovery of a +300koz high-grade gold deposit that is still open and growing and located in close proximity to the plant gives us the opportunity to create an exciting long-term operating and growth plan for the Company.”
Source: Company Press Release