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An increase in the Gilbeys resource has seen the overall total rise by 110,000 ounces to 29.6 million tonnes at 1.3 grams per tonne gold for 1.23 million ounces of gold.
The increase was the result of a maiden resource for the Gilbeys South zone, less than 10 months after its discovery.
The inclusion of Gilbeys South in the 1.13Moz Gilbeys resource has resulted in a 30% jump in oxide ounces, 49% boost to transitional ounces and a 7% increase in fresh ounces.
The company said the increase of soft ore could make a material difference to the early years of the mine.
Measured and indicated resources account for 755,000oz of the total, and will underpin a reserve update in the coming weeks.
The current Dalgaranga reserve is 552,000oz at 1.29gpt gold.
Gascoyne said the updated reserve would form the basis for the debt portion of the project financing.
The company raised $50 million in a sought-after placement last month to fund Dalgaranga.
The November definitive feasibility study for Dalgaranga returned a net present value of $177 million, an internal rate of return of 65%, and an 18-month payback period at the current gold price of around $1600 an ounce.
Production would be around 100,000 ounces per annum at all-in sustaining costs of $931 an ounce, with first production targeted for the March quarter of next year.
The current mine life is six years, but Gascoyne managing director Mike Dunbar said today’s resource upgrade should extend it to at least seven.
The resource also doesn’t include the recently discovered Sly Fox prospect, where 26m at 1.8gpt from 36m, including 15m at 2.4gpt, was reported yesterday.
“This new zone has the potential to extend the mine life well beyond the current 6-7 years,” Dunbar said.
Shares in Gascoyne fell by 1.5c to 53c today after jumping by more than 5.8% yesterday.