De Grey – further impressive drilling results at Mallina
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Special Report: De Grey is a step closer towards extending its current shallow gold resource at the Mallina deposit in the Pilbara.
Follow-up reverse circulation (RC) and shallow aircore drilling has confirmed along depth and along strike extensions to recently identified parallel lodes that defined broad zones of shallow gold mineralisation from surface to about 50m depth.
De Grey Mining (ASX:DEG) said that top results from the most recent RC holes in the Central and Mallina zones include 3m at 7.9 grams per tonne (g/t) gold from a depth of 27m, 10m at 3.1g/t from 53m, 10m at 2.8g/t from 77m and 6m at 2.6g/t from 114m.
Anything above 5g/t is generally considered high grade, but with the current high gold price of above $2000/oz, grades of as low as 1-2g/t can be economic.
The aircore drilling at Mallina returned notable results of 4m at 1.7g/t gold from 68m and 8m at 1.2g/t gold from 44m.
“Mallina drilling results have culminated in an escalation of our follow-up drilling plans with a larger and more comprehensive program of RC, diamond and aircore based on these encouraging new results and the improved geological control has commenced,” technical director Andy Beckwith said.
“The program is planned to extend the current shallow resources along strike and down dip along the main 3km of resource area with deeper fences of RC drilling also targeting resource extensions to 200m depth initially at the Central Zone.
“We continue to await many results over our two other priority areas Withnell and Toweranna and expect to provide updates during November.”
The Mallina deposit, part of the company’s broader Pilbara gold project, currently has a resource of 3.83 million tonnes grading 1.3g/t gold for 160,700 ounces of contained gold.
Previous aircore drilling returned a standout hit of 40m grading 3.9g/t gold from a depth of 8m.
Deep drilling below the existing Toweranna open pit resource has also intersected multiple stacked veins hosting high-grade gold, while shallow drilling outside the existing resource also returned some intriguing hits.
Drilling between 200m and 400m depth returned high-grade results including 4.34m at 8.3g/t gold, while deeper drilling shows that the gold mineralisation occurs to a depth of at least 600m.
Meanwhile, shallow drilling to the northeast of the existing open pit resource returned results like 3m at 7.2g/t gold from a depth of 167m.
The Toweranna deposit currently has an open pit resource of 5.33 million tonnes at 2.1g/t gold for 356,600 ounces of contained gold.
In July, De Grey unveiled a 21 per cent increase to the total mineral resource at the Pilbara project to 29.65 million tonnes grading 1.7g/t gold for 1.68 million ounces.
Almost two-thirds of the resource is contained in the higher confidence measured and indicated categories.
Measured and indicated resources are based on estimates made with reasonable and high degrees of confidence.