Special Report: Today’s high-grade gold discoveries support De Grey’s belief that its rapidly growing — but still underexplored — 1.7 million ounce Mallina project hosts numerous large deposits.

De Grey Mining (ASX:DEG) has made a couple of important discoveries at the new Hemi and Antwerp prospects, southwest of the 181,000oz Mt Berghaus deposit at Mallina in WA.

At Hemi, results included 12m at 9grams per tonne (g/t) gold within a broader 43m zone grading 3.7g/t gold, just 36m from surface.

Drilling at Antwerp also 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.

Shallow, thick, and high grade – that’s what gold investors are looking for in drilling results.

The stock jumped 15 per cent to 4.6c in early trade.


Meanwhile, drilling at the Scooby prospect has intersected an additional encouraging gold intercept of 14m at 3.5g/t gold from a depth of 37m.

All prospects remain ‘open’ – meaning De Grey doesn’t know where the gold ends yet — and show potential for multiple large shear and intrusion hosted gold deposits.

“Hemi and Antwerp are exciting new greenfields discoveries under a shallow blanket of sand cover and is a direct result of our regional aircore drilling program along large-scale prospective corridors,” technical director Andy Beckwith said.

“These new discoveries validate the extensive geological assessment work that has been in progress for over 12 months and support our view that the Mallina Basin has the potential to host many large structurally controlled gold deposits.

“De Grey holds the dominant land position along the Mallina Basin, and we have been steadfast in our belief, (that) the Mallina Basin is a large and highly prospective gold province and yet is grossly under explored.

“In our view, the Mallina Basin is like the Yandal Belt and the Yamarna Belt 30 and 5 years ago respectively. Both regions have since yielded multi-million ounce gold deposits after dedicated and systematic exploration.”

The new Hemi and Antwerp gold discoveries Pic: De Grey

De Grey noted that the two intercepts at the Hemi prospect are about 700m apart and that further drilling is required to understand whether they are related or in fact represent two new independent mineralised zones.

The latest results validate the company’s regional and wide spaced aircore drilling program that is designed to systematically test the various large prospective corridors throughout the project for new large gold deposits.

Drilling planned for 2020 will include further testing of the Scooby to Antwerp structural trend, as well as other prospective corridors, De Grey said

Follow-up programs are also being planned and will include wide-spaced and infill aircore drilling along with detailed follow-up reverse circulation drilling to define potential resources.

A heritage survey has recently been completed over the parallel Berghaus Trend covering an additional 10km of prospective structure with first pass drilling planned for the 2020 field season.

Last month, De Grey reported further high-grade gold hits of up to 56.9g/t gold which demonstrated that its Withnell deposit had both substantial scale and grade.

Withnell is the largest gold resource at Mallina, currently hosting a combined open pit and underground resource of 4.65 million tonnes at 2.9g/t for 429,300oz of gold.

New high-grade gold hits strengthen underground potential at De Grey’s Mallina gold project
De Grey – further impressive drilling results at Mallina


>> Now watch: 90 Seconds With… Simon Lill, 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.