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Mining
Infill and resource extension drilling at De Grey Mining’s (ASX:DEG) Falcon deposit has all but confirmed it will be able to extend its gold bounty beyond the open pit outlined in a scoping study last year which showed the large new discovery could become a 473,000oz a year gold mine.
The gold explorer has been hard at work completing resource and extension drilling at key deposits ahead of a PFS this year, in which De Grey (ASX:DEG) aims to extend its production target beyond the already world class 4.3Moz over 10 years presented in the 2021 scoping study.
Resource definition drilling intersected super wide and high grade intersections in narrow zones of the Falcon resource including:
Extensional drilling has also established deeper potential at Hemi, with the Falcon mineralisation extending for at least 600m, 300m below the base of the proposed open pit. Results include:
De Grey managing director Glenn Jardine said the aim of current drilling is to expand the production target for Hemi as much as possible ahead of this year’s PFS.
The study will be eagerly awaited for the market, given Hemi is the largest gold discovery in WA’s rich mining landscape since the Tropicana mine was found in 2005 by AngloGold and IGO.
“Resource definition and extensional drilling at Falcon are respectively increasing the confidence level of the resource and extending mineralisation below the scoping study open pit design,” he said.
“Resource definition drilling is being conducted at Falcon and other zones at Hemi to increase the proportion of JORC Indicated mineralisation.
“This drilling aims to increase the pre feasibility study (PFS) production target above the scoping study production target of 4.3Moz and to increase the PFS evaluation period beyond the scoping study evaluation period of 10 years.
Extensional drilling has confirmed mineralisation at both depth and along strike to the south.
New pit shells will be generated for the PFS, with resource definition drilling to continue this quarter and more drilling to come after the March Quarter.
“Drilling has recently been weighted to resource definition drilling to maximise the production target for the PFS,” Jardine said.
“Drilling after the March quarter will pivot to increased resource extensional and discovery drilling at depth at all zones at Hemi.
“Exploration drilling with aircore and RC continues to be conducted in the Greater Hemi region outside the Hemi footprint.”
Falcon, which currently contains around 1/6th of Hemi’s 6.8Moz resource at 1.23Moz, now stretches 1km along strike and 600m below surface.
Mineralisation is still open at depth and to the south, suggesting there are plenty more presents for De Grey to unwrap.
Gold mineralisation at Falcon shows similar alteration and sulphide development as seen at the adjacent deposits of Aquila, Brolga, Crow, Diucon and Eagle.
The new resource definition drilling, completed on an infill of 40m x 40m will provide confidence to move Falcon’s inferred resource ounces in open pit mining areas into the higher Indicated category ahead of the PFS.
Generally, Indicated resources are considered a high enough confidence level to be incorporated into reserves.
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.
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