30 June 23 Quarterly Activities Report & Appendix 5B

Gascoyne Resources Limited (“Gascoyne” or “Company”) (ASX: GCY) is pleased to present its Quarterly Report.

Summary:

Exploration / Growth

• Drilling at the Never Never Gold Deposit continued to intersect significant widths and grades of mineralisation, both within and outside the current Resource. Some of the more significant assays included:
  • 50m @ 6.46g/t Au from 144m, incl. 10m @ 23.7g/t – DGRC1186
  • 29.15m @ 11.09g/t Au from 449m, incl. 9.44m @ 22.26g/t – DGRC1183-DT
  • 24.0m @ 6.32g/t Au from 343m, incl. 7m @ 14.69g/t – DGDH035
  • 19.9m @ 8.12g/t Au from 451m, incl. 14.7m @ 10.46g/t – DGRC1204-DT
  • 19.0m @ 6.49g/t Au from 471m, incl. 2m @ 29.57g/t – DGRC1218-DT
• New high-grade discovery in the hangingwall position 200m west along-strike from Never Never – referred to as the “Ink” prospect. Assays include:
  • 4m @ 24.56g/t Au from 160m. incl. 2m @ 46.2g/t – DGRC1187
  • 10.0m @ 12.15g/t Au from 237.0m, incl. 6.0m @ 19.53g/t (DGRC1183-PC)
  • 3.0m @ 10.07g/t Au from 117.0m (DGRC1232)
• Work commenced late in the Quarter on an upgrade to the current Mineral Resource Estimate of 303,100oz at 4.64g/t Au. The updated MRE is expected to be released before the end of July 2023.
• Strong metallurgical testwork results for Never Never deposit, including +92% overall metallurgical recoveries with a high gravity component and leach kinetics aligned with the “fit-for-purpose” Dalgaranga CIL process plant.

Care and Maintenance (Dalgaranga)

• Mining and processing operations remained on care and maintenance, with scheduling of ongoing care and maintenance activities underway to maintain the process plant and associated site infrastructure in a state for a rapid restart.

Corporate

• Conversion of Tranche A of the Tembo Capital facility to equity and Tranche B to a gold production royalty, resulting in Tembo Capital now being Gascoyne’s largest shareholder (18.6% of the shares currently on issue), and conversion of Tranche B to a gold production royalty.
• John Hodder appointed to the Board as a Non-Executive Director as the nominee of Tembo Capital.
• Shareholder approval to be sought to change the Company’s name to “Spartan Resources Limited” to reflect recent corporate and strategic developments and reflect its rapid transformation.
• Non-Executive Director fees reduced, representing a pragmatic step by the Company as it focuses its efforts on further delineating and growing the exciting high-grade Never Never deposit at Dalgaranga.
• Total cash and listed company investments at 30 June 2023 of $35.3M.

Gascoyne Managing Director and CEO, Mr Simon Lawson, commented:

“The June Quarter marked another significant step in the Company’s rapid transformation following the remarkable Never Never gold discovery.

“During the quarter, our exploration team continued with the efficient and safe execution of resource drilling and exploration activities at Dalgaranga – with the current resource drilling effort at Never Never wrapping up in June. The standout results that this program has generated – both inside and outside the existing resource envelope – continue to build confidence in the impending resource upgrade.

“Based on the grade and tenor of the results we are seeing, we have a high degree of confidence in the potential for Never Never to become the cornerstone of our long-term operating mine plan at the Dalgaranga Gold Project.

“In addition to our drilling, we also reported positive results from metallurgical testwork on the high- grade Never Never ore, which demonstrated overall metallurgical recoveries of more than 92% with a high gravity component, and leach kinetics that are aligned with the existing Dalgaranga processing plant infrastructure. This confirms a very simple, straightforward processing flowsheet can achieve very high recoveries from the extensive high-grade Never Never mineralisation, checking another key box on our pathway back to production.

“On the corporate front, we welcomed John Hodder to the Board as a Non-Executive Director in May, bringing more than 30 years’ experience in the mining industry, funds management and private equity. John represents our major shareholder, Tembo Capital, who provided outstanding support to the Company in our recent $50 million financial restructure.

“With the Company continuing to forge ahead with a new growth pathway at Dalgaranga – focused on new discoveries to deliver higher-grade mill feed – subsequent to the Quarter-end we announced plans to seek shareholder approval to change the Company’s name to ‘Spartan Resources’. I believe this name perfectly encapsulates our corporate goals and our approach to business, based on strong discipline and fearless execution, providing an opportunity to better align our name with our longer-term strategic direction.”

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