Special Report: De Grey Mining continues to build up its gold war chest at the Mallina project, with regional drilling hitting wide zones of the precious metal at the Buckle prospect barely a month after the company reported high-grade results at the Hemi and Antwerp prospects.

There appears to be no shortage of gold prospectivity within De Grey Mining’s (ASX:DEG) Mallina project in Western Australia’s Pilbara region.

Results from this early drilling, which saw several holes end in mineralisation, include 1m at 3.2 grams per tonne (g/t) from 89m and 5m at 1.5g/t from 74m within a broader intersection of 20m at 0.9g/t from 70m.

This has defined gold mineralisation over a strike length of about 1km that is associated with the southern limb of the plunging fold while neatly supporting the company’s view that its project has the potential to host multiple, large structurally controlled gold deposits.

Where it gets interesting for De Grey is that the mineralisation grade and thickness appears to increase towards the plunging fold closure to the south west and remains open — meaning the company has not yet found the edges of this potentially very large system.

“The new Buckle gold mineralisation provides another new resource drilling target on top of the newly defined Hemi and Antwerp discoveries,” technical director Andy Beckwith said.

“Further drilling is required to test the fold closure and a further 10km of untested ground between the Buckle prospect and the Amanda deposit.”

De Grey is poised to start follow-up aircore drilling at the Hemi prospect to define the vertical and lateral orientations of this encouraging new high-grade mineralisation.

The company reported last month that drilling at Hemi had returned top results of 12m at 9g/t gold within a broader 43m zone grading 3.7g/t just 36m from surface and an intersection of 25m at 2.7g/t from 32m that includes a higher grade zone of 8m at 4.5g/t.

Drilling at Antwerp returned shallow high-grade intercepts of 6m at 10.7g/t gold from just 4m below surface, and 4m at 21.7g/t gold from 32m.

De Grey also intends to carry out reverse circulation drilling in February to determine the resource potential of Hemi.

Results from the resource extension drilling program at the Mallina deposit are expected to be finalised by early February.

The Mallina project is about 60km south of Port Hedland and has current global resources of about 1.7 million ounces of gold.

>> Now watch: 90 Seconds With… Andy Beckwith, De Grey Mining


This story was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.