Gascoyne raises funds for ‘aggressive’ exploration programme

JOHANNESBURG (miningweekly.com) – Gold exploration and development company Gascoyne Resources said on Wednesday that it had completed a bookbuild to raise about A$21.5-million for a regional exploration programme at the Dalgaranga and Glenburgh gold projects, as well as for the development of the Dalgaranga gold mine.

The company said it would start an “aggressive” exploration programme at the Dalgaranga and Glenburgh projects, which was aimed at extending the mine life at the Dalgaranga gold mine, expanding the resource base at Dalgaranga and Glenburgh and targeting new discoveries.

Gascoyne has earmarked A$6.5-million for exploration at the two projects, in Western Australia, for the period ending June 2018.

“While we are focused on bringing Dalgaranga into production and remain on track and budget to commence production in the first half of 2018, the recent growth in the Dalgaranga mine plan has demonstrated the positive impact that exploration successes, such as that at Sly Fox, can have on the project economics,” said MD Mike Dunbar.

Gascoyne last week updated the Dalgaranga mine plan to include the recently discovered Sly Fox deposit, incorporating about 652 000 oz of contained gold, up from the 592 500 oz considered in the feasibility study. The updated mine plan included an increase of about one-million tonnes of ore over the previous plan, which would allow the company to use the excess plant capacity for the first two years of production, while also deferring waste movement and extending the mine life to beyond six years.

Meanwhile, Gascoyne also reported that the debt funding for the Dalgaranga mine development was nearing completion. Two Australian banks have been mandated to arrange project financing and formal facility documentation is well advanced. Facility agreements are expected to be executed before the end of the month.