Here De Grey, gold tomorrow: New returns prove confidence in Diucon deposit
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De Grey is looking at some serious bulk gold potential at its Diucon deposit with resource definition and extensional drilling returning very broad zones of mineralisation.
Extensional results such as 128.9m intersection grading 1.5 grams per tonne (g/t) gold from a depth of 340m including 26.3m from 2.3g/t gold from 341m and 43.9m at 2.2g/t gold from 374.1m are exciting as it indicates strong potential to grow the combined Diucon/Eagle resource of 48.5Mt grading 0.9g/t for 1.45Moz of gold.
It is also worth noting that the resource estimate released by De Grey Mining (ASX:DEG) in July last year represented the very early stages of exploration at Diucon.
With drilling since then both confirming and extending mineralisation at the deposit, there’s every reason to believe that good things are coming in a future resource update.
Exploration manager Phil Tornatora notes that the extension drill intercept is about 100m below the Scoping Study open pit design and that new pit shell optimisations will be conducted in the Pre-Feasibility Study with the aim of increasing gold production from Diucon.
“The resource definition results at Diucon have continued to intersect broad deposits of mineralisation including high grade intervals near surface,” he explained.
Meanwhile, resource definition drilling has also returned big hits such as:
This is a strong sign that the company will be able to convert more of the Diucon resource to the higher confidence, Indicated category, plus increase the overall grade of the deposit.
“This and other recent intersections are expected to have a positive impact on the Diucon resource grade and PFS mine schedule,” Tornatora noted.
He added that after the March quarter, drilling at the broader Hemi discovery will pivot from resource definition to resource extension and discovery drilling.
“Exploration with aircore and RC drilling continues to be conducted in the Greater Hemi region outside the Hemi footprint seeking new near surface gold bearing intrusions,” he concluded.
To date, mineralisation at Diucon has been intersected to over 1,000m along strike, 300m in width and 550m deep.
Drilling continues to return broad zones of mineralised intrusive with late higher-grade mineralisation associated with quartz-carbonate veining, sericite-albite alteration and visible gold.
Additionally, gold mineralisation at Diucon shows similar alteration and sulphide development as seen at the adjacent Aquila, Brolga, Crow, Falcon and Eagle deposits.
Resource definition drilling for the PFS will continue into the first quarter of 2022 while extensional drilling across Hemi will continue throughout 2022. The PFS is due for release in the second half of 2022.
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.