De Grey’s new discovery shows there’s plenty of gold to be found at Mallina

De Grey continues to highlight the prospectivity of its +10Moz Mallina project with drilling identifying a new structurally controlled gold zone at Withnell South that could increase shallow, open pit resources.

Multiple new lodes defined over 800m of strike and 200m vertical depth, which remains open to the east and at depth, demonstrate the potential to meaningfully increase the resource base and future production from the company’s existing, structurally hosted, regional deposits such as Mallina, Mt Berghaus and Wingina.

Notable results from the reverse circulation drilling at Withnell South are 20m grading 1.62 grams per tonne (g/t) gold from 110m and 9m at 4.6g/t gold from 159m (MWRC0320), 17m at 1.38g/t gold from 70m and 5m at 2.29g/t gold from 157m (MWRC0303), and 2m at 12.42g/t gold from 125m and 7m at 2.38g/t gold from 160m (MWRC0225).

Adding further to the prospectivity of the project, De Grey Mining (ASX:DEG) noted that metallurgical hole MWMT0005, drilled deliberately to test the down plunge orientation of mineralisation, confirmed the strong continuity and grade of the Withnell Main Lode.

This hole returned a 155.7m intersection grading 2.3g/t gold from 119m which includes higher grade intercepts of 65m at 3.2g/t gold and 7.2m at 15.4g/t gold.

“The recent exploration activities and drill results achieved by the regional exploration team have identified a new structurally hosted mineralised zone at Withnell South and demonstrates the potential for De Grey to find substantial additions to mineral resources at the Withnell gold deposit,” general manager exploration Phil Tornatora said.

“The new results at Withnell South are quite significant in that they open up the southern footwall structural position along the 7km long east-west Withnell trend.

“The discovery of Withnell South demonstrates the potential that remains to meaningfully increase the resource base and future production from our existing, structurally hosted, regional deposits.

“The results from the metallurgical hole highlight the down-dip continuity and grade of the main structure at Withnell which, combined with the new results at Withnell South, illustrate the exploration potential beneath and adjacent to the regional deposits.”

De Grey ASX DEG — Location of De Grey’s gold deposits at the Mallina gold project. Pic: Supplied

Withnell gold

RC drilling at the Withnell and Withnell South areas around the known mineralised trends at the Withnell gold deposit is part of the company’s exploration activities within the broader tenement portfolio that is being carried out in parallel with resource definition drilling at Hemi.

Withnell exploration is aimed at discovering new domains of gold mineralisation and testing for large extensions to known gold mineralisation hosted in favourable structural locations.

Improved structural and stratigraphic interpretation of the area has already contributed directly to the development of new structural targets both along strike and in the structural footwall/stratigraphic hanging wall to the south of the Withnell gold deposit.

Metallurgical and geotechnical drilling has also been progressing in line with ongoing technical studies for the regional deposits within the greater Mallina gold project.

This drilling and associated studies are designed to convert existing resources within the Pre-Feasibility Study pit shell optimisations to reserves for the Definitive Feasibility Study that is currently in progress.

Further activity

With recent RC drilling at Withnell South being relatively wide-spaced with holes drilled on 40m to 100m centres along drill lines that are spaced 50m to 200m apart, the company plans to carry out further RC and diamond drilling to follow up the previous work at Withnell South and progress mineralisation toward the Inferred resource category.

Future exploration will aim to make new discoveries and expand potential open pit resources in the Withnell area, which already has an existing resource base of 723,000oz of gold.

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.