Gascoyne Resources : 24% Increase in Resource Ounces at Yalgoo Gold Project

ASX ANNOUNCEMENT

6 December 2021

For personal use only

"The key Melville Gold Deposit now stands at just over 200,000 ounces of gold from surface with over 80% of those ounces classified in the higher-confidence Indicated category."

"Importantly, the shallow oxide gold across the surface has been further de-risked with a close-spaced grade control drilling program. A Mining Lease Application has been lodged with DMIRS over Melville, including possible extensions to the north and south and we have received conditional approval for haulage options from the Shire of Yalgoo. All the requisite mining-related studies are now underway.

"The definition of a maiden 43,000oz Inferred Resource at Applecross, located just north and along-strike of Melville, delivers more, shallow, readily-accessible gold ounces to the growing Yalgoo Gold Project mineral inventory. These ounces have been delivered at an impressively low discovery cost of just $10 per ounce drilled, and within a timeframe of less than six months. This shows how cheaply, and quickly well targeted drilling can deliver additional resource ounces at Yalgoo.

"Our intention is to continue to build on this strong platform with further targeted drilling to be undertaken in the coming months. With maiden Resource estimates also underway for two additional prospects, Don Bradman and Crescent, we can look forward to strong news-flow being generated from Yalgoo in the early part of 2022.

"With these new shallow gold resources at the Yalgoo Gold Project adding to the existing resources at Dalgaranga, Gascoyne now has over 900,000 ounces of shallow gold in resource over our combined Murchison gold assets.

"Combined with our outstanding team and infrastructure at Dalgaranga - where we have established an industry-leading processing cost of $14/tonne - and the growing resources of shallow higher-grade material at the nearby Yalgoo Gold Project, we are rapidly de-risking our production profile while creating a very solid foundation for an exciting period of growth."

Gascoyne Resources Ltd (ASX: GCY; Gascoyne or the Company) is pleased to report an updated Mineral Resource for the Yalgoo Gold Project, located 60km west of its Dalgaranga Gold Operations in the Murchison Region of Western Australia.

The updated Resource, which represents a 24% increase in contained ounces on the figure published by the previous owner Firefly Resources, comprises a maiden JORC-2012-compliant Mineral Resource Estimate (MRE) for the Applecross Gold Deposit as well as an updated "Grade Control" MRE for the key Melville Gold Deposit.

The update reflects the growth potential of the Yalgoo Gold Project and its strategic relevance as a potential future source of higher-grade ore feed for the Dalgaranga Operations.

The relevant metrics for the Applecross and Melville "Grade Control" Mineral Resource Estimates are shown in Table 1 below. The Melville Gold Deposit maintains an 80% conversion of Inferred to Indicated material.

Table 1: Melville "Grade Control" JORC 2012 Mineral Resource Estimate as at 6 December 2021

1Calculated using a 0.7g/t cut-off grade

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Diamond Drilling Results

Prior to the Gascoyne/Firefly merger, Firefly completed six diamond drill-holes at Melville to provide samples for metallurgical test work and geotechnical information to assist in open pit design.

Assay results have now been received from the drilling and a number of shallow gold intersections have been returned. Better results include:

• 20m @ 2.1 g/t Au from 57m including 8m @ 4.0 g/t Au and 11.33m @ 1.4 g/t Au from 85.67m in FMDD0003 (see Figures 3 and 4);
• 37m @ 1.4 g/t Au from 10m, including 7m @ 4.3 g/t Au from 39m in FMDD004;
• 22.68m @ 1.0 g/t Au from 39 and 11m @ 2.9 g/t Au from 83m in FMDD0005.

See section below with intersection and hole location tables.

Figure 3. Cross Section showing the results from FMDD0003 at Melville

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