Gascoyne Resources June Quarterly Activities Report

31-Jul-2019 Intellasia | | 3:27 PM Print This Post



* Cash flow positive for month of June under Voluntary Administration (VA) ($4.3M).

* Record gold price received in month of June averaging $1,971 for 5,407 ounces after Lenders closed out forward sales program in VA, with gold Sales for the quarter of 17,120 ounces for inflows of $31.1 million.

* AISC of $1,816 for the June quarter ($2,074 March Qtr), with June AISC of $1,538.


* Dalgaranga operations continued to be Lost Time Injury (LTI) free to the end of June.

* Record Monthly mining rates achieved as planned in April and May (1.8 and 1.9M BCM respectively) before deliberately decreasing to 1.1M BCM in June immediately post Voluntary Administrators appointment.

* Record plant throughput achieved in June (275kt), with quarterly throughput continuing at or above nameplate rates of ~2.5 – 3Mtpa

* Quarter on quarter production physicals (relative to the March Quarter):

Processed Ore Grade increased to 0.77 g/t Au (from 0.70g/t), including 0.84 g/t Au in June.

Ore Processed slightly down at 716,000t (from 735,000t).

Metallurgical Recovery slightly down at 88.7% (from 89.7%); and

Recovered Gold of 15,787 ounces (up from 12,414 ounces).

Operational Improvements:

* Significantly improved grade control geological models resulted in a positive mine call factor for June (+8%).

* Positive results from Blast Movement Technologies GPS balls trial in early July confirms benefits of technology to improve controls on dilution and ore loss due to blast movement.

* Mined grades expected to lift during the September 2019 quarter due to increased contribution from the Gilbey’s main zone (oxide/transitional) ore coming from southern end of the pit.

Long Term Planning:

* Gilbey’s main zone 32 hole, reverse circulation (RC) infill program was successful in confirming grade and width continuity of the main Gilbey’s mineralised structure over a strike length of 650m. Results from the program have been incorporated into the new Localised Uniform Conditioning (LUC) geological model, which reconciles well against historical production, including Equigold production records.

* Updated Mineral Resource and Reserve estimation process using optimised pit shells, underway with final results expected in late August.

* A new Life of Mine Plan (LOMP) is being developed, based on the new LUC models, focussing on accessing the Gilbey’s main ore zone as fast as possible whilst minimising waste to ore strip ratios and maximising grade.


* Low expenditure exploration strategy currently focused on assessing prospects at Dalgaranga that can potentially be brought into the mine plan within the next 12 to 24 months.


* Appointment of Voluntary Administrators on 2 June 2019.

* Dual process underway for a sale or recapitalisation of the company or its operations.


Please click here to view the full ASX Announcement.

(Source: FTI Strategic Communications Perth)


Category: FinanceAsia

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