De Grey extends Eagle footprint, eyes mineral resource increase

Drilling at De Grey’s Eagle deposit has demonstrated clear potential to increase the 6.8-million-ounce Hemi mineral resource estimate (MRE).

Extensions 240m to the west of the MRE include new results of:

31m at 3.6 g/t from 241m;
81m at 0.5 g/t from 51m; and
33m at 1.8g/t from 109m.

Depth and width extensions to the MRE include new results of:

121m at 1.1 g/t from 146m;
91m at 0.8 g/t from 257.3m;
67m at 3.4 g/t Au from 50m;
74m at 1.9 g/t from 59m and 39m at 1.0 g/t from 145m;
61m at 0.5 g/t from 122m and 43m at 1.1 g/t from 203m; and
46m at 0.5 g/t from 324m.

Because gold mineralisation remains untested below 300m depth over the entire strike length, De Grey Mining (ASX:DEG) reckons there’s substantial potential to increase the resource with further drilling.

Cost-effectively expanding the footprint

Drilling is continuing to extend the Eagle footprint to the west and north with diamond drilling extending mineralisation at depth along the entire strike.

“These new results at Eagle continue to demonstrate the potential for De Grey to rapidly and cost effectively grow the footprint and depth extent of the mineral resource at Hemi and follow the results announced for Diucon in July,” De Grey general manager exploration Phil Tornatora said.

“The mineralisation at Eagle comprises broad intercepts of Hemi style mineralisation with overprinted zones of quartz veining.

“This appears to represent a structural overprint and controls internal higher-grade portions of the lodes similar to the adjacent Diucon deposit.”

Eagle is located immediately to the north of the Diucon deposit and the eastern end of the Antwerp intrusion complex.

Resource definition drilling ongoing

Internal zones of higher-grade mineralisation associated with strong quartz veining have been intersected at Eagle and Diucon and the company believes this style of mineralisation appears to represent a structural overprint to the underlying Hemi style intrusion hosted mineralisation.

Resource definition drilling will continue at Eagle and Diucon to increase the confidence level of the resource estimate and to follow up higher grade mineralisation.

“Stepout drilling will continue to target extensions both along strike and down dip at Eagle, Diucon and the other deposits at Hemi,” Tornatora said.

“RC drilling is pushing west to Antwerp where we see a similar style of mineralisation in wide spaced aircore drilling.

“Resource definition drilling will continue at Eagle and Diucon to increase the confidence level of the resource estimate and to follow up higher grade mineralisation.”

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.