De Grey Mining – Strong Aircore Drilling Results From Mallina
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Special Report: De Grey Mining continues its run of impressive drilling results at its 100% owned Pilbara Gold Project after announcing strong golds hits from a recently completed aircore program at the Mallina Deposit.
The scene is set for a potentially significant upgrade to gold resources at Mallina following the release of impressive exploration drilling results and confirmation that an RC drilling program is already underway.
Results from aircore drilling at Mallina, including a standout hit of 40 metres grading 3.9 grams of gold per tonne from a depth of 8 metres, were reported to the market this morning.
Investors took a liking to the news, initially pushing the share price up to 5.9c in early trading.
De Grey technical director Andy Beckwith described the results as “very encouraging”. They support the company’s “aggressive drilling campaign aimed to substantially increase resources”.
Along with the new grade shallow zones of gold identified at Mallina, De Grey announced the discovery of new gold zones three kilometres to the west of the deposit.
Mallina has a defined resource of 3.83 million tonnes of ore grading 1.3 grams of gold a tonne, for a contained 160,700 ounces of contained gold. This is based on drilling undertaken until mid-2018, and is hosted along a 7-kilometre long portion of the Mallina shear zone.
The deposit and the surrounding exploration targets have significant upside potential, and Mallina is located only some 15 kilometres from the Withnell deposit.
Withnell is currently the largest single deposit within De Grey’s Pilbara Gold Project (PGP), hosting a resource of 4.65 million tonnes at 2.9 g/t gold for 429,300 ounces.
De Grey said the latest aircore results from Mallina had given reason to bring forward follow-up drilling there, with a Reverse Circulation (RC) rig already working to better define the newly identified lodes and further aircore drilling to commence later this week.
Drilling through the remainder of the year at the PGP will focus on Mallina, Withnell and the Toweranna prospects.
In July, De Grey unveiled a 21% increase to the Total Mineral Resource at the PGP. It currently stands at 29.65 million tonnes grading 1.7 g/t gold for 1.68 million ounces.
Almost two-thirds of the resource is contained in the higher confidence Measured and Indicated categories.
Expect a steady flow of further news in coming weeks, with the Company confirming back on 22 August that they had three drilling rigs in operation across the Pilbara Gold Project.