More High-Grade Assays From Never Never Highlight Significant Growth Potential

Gascoyne Resources Limited (“Gascoyne” or “Company”) (ASX: GCY) is pleased to report the latest results received from resource and exploration drilling at the Dalgaranga Gold Project in Western Australia.

Key Points:

• Increasing number of assays now being returned from an extensive resource extension RC and diamond drilling program in 2023 targeting rapid expansion of the high-grade 303koz @ 4.64g/t Never Never Mineral Resource.
  
• DGRC1177-DT (Diamond Tail), which logged visible gold in core from a 15m interval of strong Never Never-style mineralisation1, has returned a slightly wider-than-expected 15.7m total assay intercept of:
  • 15.7m @ 13.51g/t gold from 216.3m including 2.56m @ 34.14g/t and 5.27m @ 19.17g/t – DGRC1177-DT (assays top-cut to 50g/t)
• DGRC1178-DT (Diamond Tail), targeting the deeper down-plunge extent of the Inferred portion of the Never Never Mineral Resource, has confirmed the consistent width and high- grade of the deposit with a strong intercept of:
  • 12.73m @ 6.40g/t gold from 380m including 4.71m @ 16.16g/t – DGRC1178-DT.
• DGRC1187-DT (Diamond Tail) has intercepted visible gold at 380m down-hole in a 2m wide strongly mineralised interval of Never Never-style mineralisation (assays pending) well outside the Resource and right on the western edge of the Never Never target zone, and;
• High-grade gold assays have been returned from a 4m wide zone of smoky quartz veining 220m above the visible gold intercept at 160m in the RC pre-collar (DGRC1187):
  • 4m @ 24.56g/t from 160m including 2m @ 46.2g/t (RC assays top cut to 50g/t) – DGRC1187 (new position – possible new discovery).
• DGRC1193, which was designed to in-fill a deeper area of Inferred material in the southern part of the current Never Never MRE, has confirmed a consistent thickness of high-grade mineralisation (this area was previously drilled early in the 2nd half 2022):
  • 17m @ 9.08g/t from 239m including 10m @ 14.08g/t – DGRC1193.
• DGRC1196 has intersected a new high-grade extension to Never Never style mineralisation 30m further south of the main Never Never MRE envelope and 100m down-plunge of the original “Gilbey’s North” discovery). This intercept could indicate a trend in increasing grade with depth as has been noted in Never Never and also in the Gilbeys Main deposit further south:
  • 7m @ 4.93g/t from 259m – DGRC1196 Gilbey’s North down-plunge (southernmost intercept – 30m outside the Resource).

Figure 1: Plan view of the Never Never Gold Deposit. Maximum downhole grade Au g/t shown “snapped” to collar.

The latest results provide further insights into the potential scale, significance and growth upside of the rapidly emerging Never Never gold deposit at Dalgaranga.

Gascoyne Managing Director and Chief Executive Officer, Simon Lawson, said: “We are starting to see some of our diamond drill core assays coming back from the labs now and the structural detail, broadness of the intercepts and consistence of the grades really do validate our geological interpretations while also suggesting that there is significant growth potential for the current Never Never Mineral Resource!

“During 2022 and into 2023 we rapidly outlined a high-quality, high-grade Mineral Resource Estimate (MRE) of 303,000oz at 4.64g/t Au for Never Never. These latest drill assays from our ongoing resource definition and extension targeting program show that Never Never is potentially a much more extensive and consistent mineralised system than we had hoped for.

“Additionally, we have discovered what appears to be a completely new high-grade position 200m west along-strike from Never Never in an RC pre-collar (4m @ 24.56g/t gold – DGRC1187). This is a very exciting development for our team!

“Discovering and growing a new high-grade gold deposit situated already on an approved Mining License and next to an existing a process plant is an enviable position to be in. However, having also a consistent, high-grade deposit that is mineralised from surface and which appears to be open in every direction as well as getting better grade at depth – is an exciting and somewhat unique position for any exploration team to be faced with.

“The fact that we are getting such a consistent strike rate with our drilling is also extremely encouraging, combined with the fact that step-out drilling is beginning to reveal potential new high-grade structures well outside the main Resource and a new high-grade position 100’s of metres away along-strike.

“Apart from an outstanding hit rate with drill targeting, our geologists estimate that likely more than 50% of our diamond drill intercepts since drilling restarted in 2023 has visible gold logged in them, this observation speaks to the incredible endowment and potential of this amazing discovery.

“Our fearless approach continues to pay off. With drilling continuing around the clock, we believe there is much more to come! “

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. 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”.

Never Never is much higher grade than any of the previously defined ore bodies at Dalgaranga and appear to be far more structural, fold and/or shear-hosted as opposed to the more stratigraphic/shale associated historically defined Gilbey’s series of gold deposits.

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