De Grey Mining’s latest exploration at its Diucon deposit has highlighted the significant potential to increase the company’s overall resources at its Mallina gold project in WA.
Gold mineralisation at Diucon shows similar alteration and sulphide development as seen at the adjacent deposits of Aquila, Brolga, Crow, Falcon and Eagle deposits, and presents a potential geological link between Crow and Antwerp.
De Grey (ASX:DEG) latest drilling results show clear potential to grow and upgrade the current inferred mineral resource estimate for the Diucon/Eagle deposits of 1.45 million tonnes at 0.9 g/t gold for 1.45 million ounces.
New extensional drilling results include:
Section 28720E:
- 173.7m at 1.5 g/t gold from 271.3m (HERC442D – 80m below the current resource); and
- 99.0m at 1.1 g/t from 256m and 173m at 1.6 g/t from 366m (in HERC851D – 160m below the current resource).
Section 28880E
- 108.4m at 0.8 g/t from 280.72m (HERC460D – 80m below the current resource).
And infill results are:
Section 28720E
- 58.7m at 2 g/t from 224m (HERC441D – partially previously reported).
Section 28800E
- 88m at 1.9 g/t from 256m (HERC476D).
Section 28880E
- 87m at 1 g/t from 180m and 42m at 4.2 g/t from 278m (HERC458D).
Increasing Hemi resource with further drilling
The company says these results demonstrate the potential to rapidly and cost effectively add to the gold endowment of the Hemi deposits.
“The new drilling results at Diucon provide clear evidence that increases to the current Hemi resource can be expected with further drilling,” managing director Glenn Jardine said.
“The higher grades zones within these broad gold zones are also encouraging, as we continue to extend mineralisation to the west and conduct closer spaced drilling within the existing resource footprint.”
Jardine also highlighted that the mineralised intrusion on Section 28720E widens at depth.
“Step out drill hole HERC889D is currently in progress, targeting a further 160m beneath HERC851D,” he said.
“This well mineralised section remains entirely open to the west and depth.
“The mineralised intrusion at Diucon was intersected in RC and diamond drilling beneath unmineralised sediments previously intersected in shallow aircore drilling.
“This aspect provides encouragement for discovering additional mineralised intrusions around Hemi in a similar setting.”
The extensional drilling at depth and to the west towards the Antwerp prospect is ongoing.
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.