Page 10 - pd289-Dec20-mag-web_Neat

neWs

Gascoyne is finding higher grade sweeteners to complement the existing mine life at Dalgaranga

If high-grade material continues at Sly nomic material. Our economic cut off is “That is more than likely moving to a
Fox “theoretically” the waste moved to 0.3 g/t gold at the moment. At this gold PFS and will involve a significant amount
access the ore may provide the opportu- price that is $80/g and we have one of of drilling, exactly how much we don’t
nity for a joint Sly Fox/Plymouth pit given the lowest cost processing plants less know but it will come out of this desktop
their close proximity. than $14/t, so there is quite a bit of mar- rework we are doing right now.”
“We may actually see a combined pit gin there at 0.3 g/t,” Hay said. Initial thoughts are that Glenburgh will
which will allow better economics to get “We are in different times, the gold host a couple decent size open pits where
down to the deeper portion of Plymouth,” price is different and it does give us base load tonnage will be sourced, with
Hay said. other opportunities but we are becoming the potential for high-grade gold to be ac-
It is likely that resources at both Sly much more focused and efficient on our cessed underground
Fox and Plymouth will fall into the natural costs and our processing plant. If we can “It needs more drilling but has the po-
business cycle at Gascoyne and will be achieve an uplift of 5% through our plant tential to give you 5,6,7 g/t underground
announced in April, unless greater po- that is worth a lot of money and we are feed which will be the grade sweetener.
tential is realised earlier. not short on tonnes.” That is what we will be looking at as a
Sly Fox and Plymouth are the type of Hay said Dalgaranga was a bulk gold possible project development at Glen-
organic opportunities Gascoyne is pur- mining play which meant “hunting down burgh,” Hay said.
suing for growth, while high-grade, plus- sweeteners” to increase the company’s Glenburgh could be in project develop-
2.5 g/t, stranded assets west of Mt Mag- grade profile would significantly impact ment in two years’ time and given solid,
net will also come under consideration the business. reliable production at Dalgaranga has
for the company in due course. Another fillip for Gascoyne would be been locked in, Hay is bullish on Gas-
“It will depend on how far the truck- making a fist of the Glenburgh project, coyne’s prospects in the market.
ing is,” Hay said. “There are also some some 400km north of Dalgaranga. “Going back to the $125 million re-
smaller deposits that could be grown out As a standalone project, an aspiration- capitalisation, the $85 million was pret-
that way.” al target would be for Glenburgh to be a ty much oversubscribed two times in a
The only plant west of Mt Magnet, Dal- potential replica of Dalgaranga. positive environment for gold,” Hay said.
garanga would welcome higher-grade Historically, Glenburgh in the southern “There is a huge amount of money
feed into the circuit, with the current life- Gascoyne region – was regarded a po- flying around trying to find good invest-
of-mine plan including four years of min- tential company-maker capable of run- ments and I think that leads into some of
ing and processing at about 0.5 g/t gold ning at a rate of 100,000 ozpa gold. our peers with similar production profiles
followed by processing of 0.3-0.5 g/t Hosted in a mineralised shear system and you look at their market cap and that
stockpiled ore for a further three years. similar to Tropicana, Glenburgh could be is almost double ours [$135 million]. So,
The seven-year life-of-mine targeted subject to a PFS in the near future. if you are looking for really good value
production scenario will see a total of “Can it be like a Dalgaranga – 60,70- and potential uplift just purely on a peer-
400,000oz gold extracted, based on the 80,000 ozpa producer – with a different to-peer basis we should in the near term
current 88% of proven and probable re- cost regime? We are looking at it through start to rerate just on that market com-
serve. that lens now and we are redoing the parative basis.”
“I think the message is slowly com- mineral resource estimate that is due – Mark Andrews
ing through that we are finding higher- late next month/early December, but cer-
grade material that will supplement and tainly in the December quarter. That will
displace and push out lower-grade eco- inform us of our next step,” Hay said.

Page 10 DeCeMBeR 2020 - JaNUaRY 2021 aUSTRaLIa’S PaYDIRT