Gascoyne Resources has completed the acquisition of Dalgaranga Gold Project by finalising the purchase of the minority joint venture partner’s 20% interest in certain leases.
With this acquisition, the company gains 100% ownership in the property.
Dalgaranga Gold Project hosts measured, indicated and inferred resource of 25.7Mt at 1.4g/t gold for 1.12 million ounces of the contained metal, with proven and probable ore reserves of 552,000oz.
Currently, drilling at the property is underway and the assay results are expected in this quarter.
As well as the Dalgaranga Gold Project, the Gascoyne Resources also owns 80% interest in two surrounding exploration licences, both considered to host substantial gold mineralisation.
For the remaining 20% interest in the Dalgaranga Gold Project, the company paid $177m as consideration, which was based on the latest feasibility study.
Gascoyne Resources paid $4.5m in cash and issued 11 million shares (escrowed for 12 months) and $1.5m will be paid after the company produces 30,000oz from the project.
The minority joint venturer partner chose to receive the maximum portion of payment in Gascoyne shares as they wanted to remain associated with this project in future.
The Dalgaranga project is located nearly 65km from Mt Magnet in the Murchison gold mining region of Western Australia. It covers a majority of Dalgaranga greenstone belt.
Discovered in early 1990s, the project produced 229,000oz of gold carrying a cost of around $350/oz from 1996 to 2000.
Image: Dalgaranga Gold Project Deposit and Prospect Layout. Photo: courtesy of Gascoyne Resources.