Visible gold doubles the extent of Never Never deposit for Gascoyne Resources

Gascoyne Resources says the mineralization intercepted at Never Never was the strongest it has seen so far at the deposit.

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.

Strongest mineralisation

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.”

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