Page 9 - pd289-Dec20-mag-web_Neat

generating positive free cash generation Glenburgh), Mumbakine Well (near Kar- head grade has been,” Hay said.
and now with a far more manageable lawinda) and Beebyn (north of Cue). “The significance of Sly Fox is that if
debt balance, so the platform is there,” In the near term though, a concerted we can mine that at 2 g/t it will displace
Coyne said. effort to further add to the current sev- 100-200,000t of 0.7 g/t material and lift
About $5-6 million free cash flow is ex- en-year mine life at Dalgaranga is being our head grade and overall ounces re-
pected by Gascoyne this quarter, which made. covered.
is consistent with the previous two quar- Gilbeys Main Zone (GMZ), the produc- “That is the main aim of the game, I
ters. tion centre at Dalgaranga, is showing am not only targeting extra gold with this
Free cash generated by Gascoyne will signs of life below the current mine pit drilling I am also targeting higher grade –
be added to a tidy balance sheet under- design with an intersection in the south- grade is king, long live the king.”
lined by cash of $30 million and net debt ern end of 11m @ 4.2 g/t gold indicating Along strike back towards the Gilbeys
of less than $10 million as at October 26. the potential for higher-grade material at pit is Plymouth, which Hay says has al-
Subject to the facility with Investec, depth. ways been “challenged” and remains re-
40% of gold production from Dalgaranga Gascoyne will carry out follow-up drill- sourceless at this stage.
(November 2020 to April 2022 rolling) ing at Gilbeys in the December quarter, However, drilling – 20m @ 2.6 g/t gold,
has been hedged. while there appears to be significant mo- including 13m @ 3.8 g/t – is demonstrat-
“Our hedge price secured at $2,667/ mentum behind the Sly Fox and Plym- ing width and grade improvements with
oz is pretty high compared to what we outh deposits. depth.
were doing our initial planning on at the Both Sly Fox and Plymouth are within “We are very encouraged to put a
time we signed up with Investec, so we 1.5km of the 2.5 mtpa processing plant number of extra holes in there to see if
have already locked in more than suf- at Dalgaranga and are shaping as vital we can get enough grade and tonnes
ficient cash margin for the remainder of pieces of Gascoyne’s future. that the optimisation will pull down on.
the FY2021,” Coyne said. “They are two smaller deposits that We know the oxide simply isn’t going to
A geologist at heart, Hay is keen to have great potential and are really un- perform, we’ll get some low-grade out of
double the budgeted $3 million for explo- tested and starved of any exploration or it but it is not reliable, so we won’t spend
ration in FY2021 depending on the level resource definition drilling for the past too much time proving up the oxide
of success at Dalgaranga and Glenburgh five years. Sly Fox – 40m @ 2 g/t gold zone,” Hay said.
initially. – has been teasing me for quite some “We know the history of Dalgaranga,
Hay is confident it won’t be “hard find- time and we managed to get four holes all the problems occurred in the oxide
ing something” at Dalgaranga or Glen- in there. The significance of it in the core portion in the top 50-odd meters. We are
burgh, while regionally there is great po- is that we are seeing 15m true width or completely through that in the Gilbeys
tential seen at Mt Egerton (120km from wider at better grade than our average and Sly Fox pits.”

RC drilling of 4,000m will target the southern Gilbey’s, Sly Fox and Plymouth deposits, with resource extension drilling
to follow-up significant intersections, including 11m @ 4.2 g/t gold at southern Gilbey’s and 26m @ 1.8g/t at Sly Fox. An
aircore rig testing Dalgaranga regional exploration targets is expected to start later this quarter

aUSTRaLIa’S PaYDIRT DeCeMBeR 2020 - JaNUaRY 2021 Page 9