Hemi discovery company De Grey Mining has made a new gold find at its Gillies prospect within its Farno McMahon joint venture in the Pilbara region of WA.

Broad-spaced drilling at the Gillies prospect has detected a new shear-hosted gold target located 30km southwest of De Grey Mining’s (ASX:DEG) famous Hemi gold discovery.

A drill hit for the new shear zone is an intersection that returned 52m at 0.7 grams per tonne (g/t) gold from 53m, including 15m at 1.8 g/t gold from 90m.

“Gillies is shear zone hosted, similar to Withnell, Wingina, Mallina and Mt Berghaus which make up a significant portion of the company’s regional 2.2 million-ounce existing endowment,” said managing director, Glenn Jardine.

The new shear-hosted gold area was intersected over a broad 50m thick zone downhole.

The mineralised shear zone for gold at the Gillies prospect is open down-dip and up-dip on section and along strike, and previous anomalous surface soil sampling defines a northeast and southwest trending surface expression over ~700m.

The company has to date carried out drilling for 21 holes for 4,400m to follow up encouraging aircore and soil sampling completed in late 2019 for the prospect.

Advance numerous shear zone targets: strategy

De Grey Mining’s strategy is to advance the numerous shear zone and intrusion related targets within its extensive tenement portfolio in the Pilbara region of WA.

A follow-up drilling program for 2,000m is planned at the Farno McMahon joint venture for the June-ended quarter to test numerous bedrock gold anomalies, including some Hemi-style intrusion targets.

“Exploration within the Farno joint venture is at a very early stage, however, this new gold system provides strong evidence on the potential of the region,” said Jardine.

The drilling at Gillies has enabled De Grey Mining to increase its equity in the Farno joint venture to 75 per cent from 30 per cent and its partner, TSX-listed Novo Resources (TSX:NVO), has 25 per cent.

“De Grey has formed a dedicated regional exploration team which is preparing for the company to restart exploration outside of the Greater Hemi area, in parallel with extensional and exploration work within the Greater Hemi area,” said Jardine.

“We anticipate following up the Gillies discovery hole in the next quarter,” he added.

 

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.

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