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GASCOYNE GR RESOURCES LIMITED ASX : GCY 29 October 2021 QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2021 SHARE PRICE : $ 0.425 at 29 Oct 21 SHARES ON ISSUE : 251.0 million MARKET CAP : $ 107 million at 29 Oct 21 CASH : $ 26.4 million at 30 Sept 21 Highlights : Production from Dalgaranga of 16,744oz for the quarter Free cash flow generation of $ 7.3M for the quarter 16,759oz sold at an average realised price of $ 2,529 / oz including 10,150oz sold into the hedge book at an average price of $ 2,584 / oz ■ AISC $ 1,976 / oz for the quarter - - 701kt milled at feed grade of 0.87g / t Au and 85.9 % recovery for the quarter Mining at Plymouth commenced 44m @ 2.0 g / t Au , including 18m @ 3.8 g / t from 2nd diamond hole at Sly Fox deposit and significant intersections returned from the Hendricks prospect Total cash and value of gold on hand ( 546oz ) as at 30 September 2021 was $ 27.7M bank debt reduced to $ 10.5M _ Net cash position of $ 15.9M with cash of $ 26.4M at quarter end $ 3.2M mark - to - market gold hedge position at quarter end , with 43,632oz hedged at an average of $ 2,506 / oz over the next 12 months Enhanced business plan completed in October which involves the deferral of the Stage 3 Gilbey's cutback to improve cash flow and remove up to $ 60M waste stripping expense in FY2022 FY2022 production guidance of 70,000 - 80,000 ounces maintained Gascoyne Resources Limited ( " Gascoyne " or " Company " ) ( ASX : GCY ) is pleased to provide the following update on its activities for the quarter ending 30 September 2021 , including operating and cost performance at its 100 % owned Dalgaranga Gold Project ( " Dalgaranga " ) . Gascoyne Managing Director and CEO , Mr Richard Hay , commented : " We have had another solid quarter of production at Dalgaranga and produced $ 7.3 million of free cash flow despite some operating constraints due to weather related and localised pit slip events earlier in the period . The Dalgaranga plant continued to perform well above its 2.5Mtpa nameplate capacity at an annualised rate of + 2.8Mtpa in the quarter . " Post the end of the period we outlined a revised business plan which involves delaying the Stage 3 cutback of the Gilbey's pit and accelerating the introduction of regional ore sources to boost near - term cash flow and reduce financial risk . " Westgold announced on 29th October that its takeover offer had opened for acceptances . Following a comprehensive assessment in consultation with its financial and legal advisors , the Board of Gascoyne has determined that if the Westgold Offer was capable of being completed it would be superior in value for Gascoyne shareholders compared to completing the Scheme of Arrangement ( " Scheme " ) with Firefly Resources Limited ( " Firefly " ) . The Board , however , notes the condition set out in section 7.2 ( a ) of the Bidders Statement whereby the Westgold Offer is subject to the Scheme with Firefly not proceeding and being validly terminated ( " Firefly Scheme Termination Condition " ) . Currently the Firefly Scheme Termination condition is not capable of being satisfied without Firefly's agreement . All dollar figures included in this report are Australian dollars unless otherwise stated DIRECTORS Richard Hay , Managing Director & CEO George Bauk , Non - Executive Chairman Rowan Johnston , Non - Executive Director Hansjoerg Plaggemars Non - Executive Director MANAGEMENT David Coyne , CFO & Company Secretary David Baumgartel , Executive GM Operations and Development Julian Goldsworthy , Chief Geologist Tejal Magan , Head of Finance Gascoyne Resources Ltd ABN 57 139 522 900 PO Box 1449 West Perth WA 6872 Level 1 , 41-47 Colin Street West Perth WA 6005 +61 8 9481 3434 admin@gascoyneresources.com.au gascoyneresources.com.au