De Grey’s wide Diucon gold hit hints at deeper riches

De Grey has intersected a major new gold intersection at the Diucon target that highlights the potential for further resource growth at the Hemi deposit within its broader Mallina project.

Importantly, the extremely wide intersection of 359.4m grading 1.2 grams per tonne (g/t) gold from 530m – including 97.1m at 2.6g/t gold from 580.92m with high grade zones of 19.3m at 7.4g/t gold and 2m at 22.5g/t gold – is below the existing resource.

Not only does this present significant upside to the resource of 8.5Moz at Hemi, it also increases the likelihood of future production increases.

Additionally, the intrusion hosted mineralisation intersected in HEDD128 occurs below lightly mineralised sediments that extend to a depth of about 100m, demonstrating the potential for finding significant zones of hidden intrusion hosted mineralisation at Hemi and Greater Hemi where there is an abundance of near surface gold anomalism.

Further support for De Grey Mining’s (ASX:DEG) belief that resources could be extended further comes from other extensional drill results such as 26.9m at 1.9g/t gold from 485.03m (HEDD361), 26m at 1.4g/t gold from 270m (HEDD162), and 13m at 3.2g/t gold from 523.05m (HEDD400).

Diucon drilling outlines potential mine expansion

“The results for resource step out drill hole HEDD128 demonstrate significant upside to the May 2022 Resource that has been used as the basis for open pit mine planning for the PFS,” technical director Andy Beckwith said.

“Studies to be conducted following completion of the PFS may identify additional production potential.

“Diamond drilling at Hemi is currently focused on large scale resource extensions at Aquila, Brolga, Diucon, Eagle and Falcon and new intrusion discoveries.

“Continued exploration success at the Mallina gold project remains a strategic objective of the company and exploration efforts are focused on identifying large scale resource extensions and new large scale discoveries.”

General manager exploration Phil Tornatora added that the new intersection had something for everyone including a depth extension to the resource, an increase in the intrusion true width to 300m, increased potential for a large-scale open pit and underground mining with selective high-grade zones, and further upside as it remains open at depth and down plunge.

PFS work has already highlighted a proven processing pathway for Mallina with high gold recoveries and reduced CO2 emissions compared to alternative methods.

The new intersection occurs from 450m to 700m vertical depth and represents one of the best and deepest intercepts drilled at Hemi.

Additionally, shallow mineralisation remains open to the west of the Diucon and Eagle deposits.

De Grey Managing Director, Glenn Jardine will be presenting at Kalgoorlie’s Diggers and Dealers today to further update investors on their recent activities as De Grey remains on track to finalise its PFS during the upcoming September 2022 Quarter.

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.