Visible gold doubles the extent of Never Never deposit for Gascoyne Resources
Abundant visible gold has highlighted the potential for Gascoyne Resources (ASX: GCY) to double the extent of the Never Never deposit within the Dalgaranga gold project in Western Australia.
An “exceptional” drill hole from near-mine exploration has identified visible gold in a position considered “very likely” to be a down-plunge extension to the deposit.
The gold was intersected in a mineralized zone of more than 40m in width from a hole designed to hit the projected extension between 400m and 500m depth with a total length of 600m.
The mineralization consists of a variably-silicified and altered zone in intermediate rocks from 390m to 397.5m; and a strongly-silicified zone with intense sericite alteration, minor pyrrhotite-pyrite and trace chalcopyrite-arsenopyrite sulphides from 397.5m to 415.5m.
Coarse visible gold was noted at depths of 397.5m, 398.5m, 406.3m and 406.9m downhole.
At 415.5m to 431m, the zone comprises a mineralized shale unit with minor pyrrhotite-pyrite and colloidal quartz veining throughout.
Gascoyne said the new intersection is the strongest mineralization seen so far at Never Never.
It is situated more than 180m further down-plunge of the 79,600 ounce maiden resource estimate announced earlier this month.
Last week, the company confirmed two high-grade reverse circulation holes with intercepts at 40m below the resource envelope and a best result of 50m at 4.58 grams per tonne from 191m, including 24m at 7.3g/t.
Double the depth
Managing director Simon Lawson said the new results potentially double the depth of the resource envelope of 660,000t grading 3.78g/t.
“We are now looking at the mineralized footprint of Never Never extending from surface to over 380m vertical depth [which is] a down-plunge length of over 500m and potentially double the depth of the recent resource,” he said.
“This is a high-grade gold system which extends from surface for over half a kilometer, remains wide open at depth [and] is a rapidly-expanding discovery which sits in the shadow of our infrastructure less than one kilometer from our 2.5 million tonnes per annum processing plant.”