Latest Assays Continue To Expand Never Never Ahead Of Impending Resource Upgrade

Gascoyne Resources Limited (“Gascoyne” or “Company”) (ASX: GCY) is pleased to report the latest assay results from resource and exploration drilling at the Never Never Gold Deposit and nearby surrounding areas, part of the 100%-owned Dalgaranga Gold Project in Western Australia.

Key Points:

• Numerous outstanding intercepts from resource expansion drilling at the Never Never Gold Deposit (current MRE: 303,100oz at 4.64g/t) ahead of a key Resource update scheduled for late July. Highlights include:
  
  • DGRC1204-DT: 19.9m @ 8.12g/t Au from 451.0m down-hole1, including:
    
    • 14.7m @ 10.46g/t Au from 452.8m –120m below the current MRE
      
  • DGRC1191-DT: 14.4m @ 9.09g/t Au from 333.1m down-hole, including:
    
    • 6.4m @ 13.64g/t Au from 337.0m – Outside the MRE to the south
      
  • DGDH035: 24.0m @ 6.32g/t Au from 343.0m down-hole, including:
    
    • 7.0m @ 14.69g/t Au from 360.0m – Below and south of the deposit plunge
      
  • DGRC1199-DT: 15.0m @ 11.96g/t Au from 291.0m down-hole, including:
    
    • 5.9m @ 17.19g/t Au from 299.0m – At margin of the current Inferred Resource
      
  • DGRC1222-DT: 14.0m @ 9.16g/t Au from 414.0m down-hole, including:
    
    • 5.0m @ 15.13g/t Au from 423.0m – Outside & below current MRE to the north
      
  • DGRC1218-DT: 19.0m @ 6.49g/t Au from 471.0m down-hole, including:
    
    • 2.0m @ 29.57g/t Au from 487.0m – Outside and below MRE
      
  • DGRC1213-DT: 8.6m @ 4.79g/t gold from 408.0m down-hole, including:
    
    • 3.0m @ 6.97g/t Au from 408.0m – In the Inferred area of the current MRE
      
• Also, a further significant intercept from the high-grade gold discovery in the hanging-wall of Never Never, now named the “Ink” prospect:
  • DGRC1232: 3.0m @ 10.07g/t Au from 117.0m down-hole
• This latest “Ink” intercept supports previously reported assays up and down-dip, including:
  • 10.0m @ 12.15g/t Au from 237.0m down-hole, including 6.0m @ 19.53g/t Au (DGRC1183-PC)
  • 4.0m @ 24.46g/t Au from 160-m down-hole (DGRC1187-DT)

Assays have been received for a further seven Reverse Circulation (RC) and 22 diamond holes (DD/RCDD) targeting extensions of the Never Never Deposit, as well as strategic drilling targeting the extremities of the mineralised system to allow the Company to finalise a key Mineral Resource Estimate (“MRE”) upgrade, scheduled for completion by late July.

Drilling continues to provide further insights into the potential scale, significance and growth potential of the Never Never Deposit, with numerous high-grade intercepts returned outside the boundaries of the current Indicated and Inferred Mineral Resource Estimate (MRE) of 303,100 ounces at 4.64g/t Au (comprising 1.0Mt @ 2.45g/t for 86,500oz Au “Open Pit” (>0.5g/t Au) and 0.93Mt @ 7.22g/t for 216,600oz Au “Underground” (>2.0g/t Au)), as well as on the margins of the Inferred Resource. These results will all be incorporated into the upcoming MRE update for the Never Never Gold Deposit.

A further solid result from the emerging Hangingwall position, now referred to as the “Ink” prospect, has been received with drill-hole DGRC1232 returning 3.0m @ 10.07g/t gold. Significant assay results are summarised in the highlights above and in Figures 2 and 3, with full drill-hole details provided in Table 1.

The current phase of resource drilling at Never Never has now been completed, with assays from one diamond hole still awaited and expected to be received in the coming 1-2 weeks. Work has commenced on the MRE upgrade, with the updated MRE scheduled to be completed by late July 2023.

Management Comment

Gascoyne Managing Director and Chief Executive Officer, Simon Lawson, said: “This round of assays continues to build confidence in the impending resource upgrade for Never Never. The final phase of resource drilling was specifically designed to target and test the extremities of the Never Never Gold Deposit system as we want to know where the edges of the high-grade system are for the upcoming MRE update to give us the best possible understanding of the scale and extent of this high-grade system right in front of our process plant.

“Deeper drilling at Never Never has now paused while we complete the MRE upgrade. In the meantime, we have shifted our drilling focus to target other, shallower opportunities in the near-mine environment. We have been systematically working through historic drilling and resource estimation data and can confidently say that we have identified a number of new high-grade structural gold prospects which represent potential Never Never look-alikes or repeats. Two of these are located immediately south of Never Never directly underneath the Gilbey’s open pit and one along strike to the north.

"These high-grade prospects sit in a very similar structural position to Never Never – perpendicular to the north-south Gilbey’s stratigraphy, oriented in the same east-west direction – and they host high-silica, high-grade gold mineralisation. A small program testing the potential extension of the northernmost of the new targets has already been completed, with assays awaited. Further drill planning is underway to test both priority targets directly beneath, and adjacent to, the Gilbeys Pit during the September Quarter 2023.

“We will provide further information on these exciting targets in the near future, once we have completed our data compilation, drill targeting and see the results from the initial follow-up drilling. We are excited by the tremendous opportunity that we see across our tenure – at the incredible Never Never Gold Deposit, at the other shallow high-grade targets we see near Gilbeys, and several other similar positions within a 2km radius of our processing infrastructure.

“We are starting to see our aggressive drilling strategy targeting high-grade gold crystallise a pipeline of exploration targets through to development-ready resources directly in front of our established infrastructure. We will continue to leverage our growing understanding across our tenure and grow potential ore sources with the drill bit.”

Figure 1: Never Never resource and extensional drilling campaign. Three rigs operating within DMIRS approved and cleared Never Never Open Pit mining footprint – June 2023.

Never Never Drilling Update

Never Never is a new high-grade gold deposit which strikes and plunges to the west-south-west. The deposit was discovered while following up wide, high-grade drill intercepts from the earlier Gilbey’s North extension discovery immediately north of the Gilbey’s open pit at Dalgaranga and within 1km of the process plant.

Due to the high-grade and apparent scale of Never Never, this deposit now represents the foundation of the Company’s new operating and growth plan.

Never Never is distinct from the Gilbey’s North discovery due to considerable differences in tenor, thickness of mineralisation, mineralogy, scale, orientation and host structure/rock-type. Despite these differences, due to the close spatial association of the two deposits, the Never Never and Gilbey’s North deposits are collectively known as the “Never Never Gold Deposit”.

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