De Grey confident of resource growth potential at regional targets
De Grey Mining’s strategic plan to extend its existing resources and make large scale discoveries is looking solid so far, with positive RC drill results from the Withnell gold deposit and the Calvert and Gillies prospects within the Mallina gold project.
Results from Withnell returned multiple mineralised intercepts in sheared, quartz veined sediments including 29m at 5.4g/t gold from 80m (MWRC0049).
At Calvert down dip and strike extensional drilling has returned multiple intercepts at the known shear-hosted gold deposit and has expanded the footprint of the Calvert intrusion.
Results include 14m at 3.2g/t gold from 128m (MWRC0001).
And at the Gillies prospect, follow-up RC drilling has extended the previously reported zone of gold mineralisation, with results including 5m at 14.8g/t gold from 14m from 188m (MSRC0004).
Prior to the discovery at Hemi, the Withnell trend was the largest gold deposit (723,000 ounces gold) in the Mallina Basin.
And previous exploration at the Calvert gold deposit has defined a shallow resource of 52,000 ounces gold.
De Grey (ASX:DEG) general manager exploration Phil Tornatora says the new results to the west of Hemi “continue to demonstrate the exploration and resource extension potential of the company’s 150km long tenement package.”
“This success follows renewed regional exploration activity with the establishment of a dedicated regional exploration team earlier this year in parallel with the company’s focus at Hemi.
“The company is committed to continuing exploration across its tenement package in parallel with project studies and development activities.”
Exploration has commenced with aircore drilling at the Geemas prospect this week and will move on to the Charity Well prospect in the western end of the tenement package to test intrusion-related targets.
“The aim of the exploration is to make new significant discoveries and to achieve meaningful extensions to existing regional resources that will enhance the production potential recently demonstrated in the company’s recent scoping study,” Tornatora said.
“Drilling will return to Withnell, Calvert and Gillies following initial drilling at the Geemas and Charity Well intrusion prospects and the Mallina shear-hosted target.”
This article was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.