De Grey surges up to 1.7 million ounces at the Pilbara Gold Project
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Special Report:A fresh resource upgrade increases the Pilbara Gold Project (PGP) resource by 21 per cent to 1.7moz — and there’s more where that came from, De Grey says.
Every deposit at the PGP remains ‘open’, which just means De Grey Mining (ASX:DEG) hasn’t found where the gold ends yet.
“At Withnell, improved definition and extensions to the high-grade underground lodes is a strong step forward,” technical director Andy Beckwith says.
These higher-grade underground lodes at Withnell could develop into a substantial underground resource.
“The average gold grade is 4.1g/t for 291,900oz (for underground) at the 2g/t lower cut off — and jumps to 5g/t for 228,000 ounces at a 3g/t lower cut off,” Beckwith says.
“Withnell’s underground resource grade compares well to many operating underground gold mines in Western Australia.”
Fresh drilling will target resource extensions along strike, and down dip to at least 500m. Other potential targets along the remaining 5km of mineralised Withnell Shear Zone strike will also be tested at depth during 2019-2020.
The Toweranna resource has now increased 148 per cent to 356,600oz, making it the PGP’s second biggest resource after Withnell.
The potential for a larger open pit “looks favourable” due to the circular shape, multiple stacked lodes to 200m, and the 2.1g/t grade, De Grey says.
The Company has also today a Trading Halt for a capital raising and expects to make an announcement on or before Thursday 18 July 2019.
And the explorer is confident that additional lodes exist at depth, based on historic drilling that indicates similar style of lodes are evident to over 400 vertical metres.
De Grey is now undertaking wide spaced scout drilling to test the zone between 200m to 600m, with results to be reported in the current September quarter.
“We are looking forward to completing our program of deeper scout diamond drilling initially to 600m and then our co-funded hole to 1000m depth,” Beckwith says.
“Our expectation is the stacked lodes will continue at depth throughout the intrusion and support our next Toweranna exploration target of 9.6Mt – 11.2Mt @ 2.1g/t to 2.3g/t for 680,000oz – 800,000oz to 400m depth.”
Every gold resource in the PGP remains open at depth, De Grey says. The Mallina, Mt Berghaus and Wingina deposits will also be targeted for resource extensions during the second half of 2019.