Mo’ holes, mo’ gold at De Grey’s Toweranna
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Special Report: De Grey Mining (ASX:DEG) has found high gold grades from another 17 holes drilled at the Toweranna deposit, part of its broader Pilbara project.
The explorer has drilled 42 holes so far and the latest ones have yielded significant grades.
These included hits such as 7m at 9.27g/t Au from a depth of 209m (including 1m at 25.5g/t Au from 209m and 1m at 17.85g/t Au from 212m), and 15m at 4.71g/t Au from a depth of 223m (including 3m at 8.55g/t Au from 223m and 1m @at 37.1g/t Au from 235m).
Anything above 5g/t is generally considered high-grade, though at the current strong gold price even 2g/t has the potential to be very profitable for Aussie miners.
“De Grey continues to successfully establish strong shallow gold mineralisation at Toweranna,” said technical director Andy Beckwith.
“Toweranna continues to open our eyes to this new style of gold mineralisation. We don’t know how big Toweranna can be just yet as it remains open and is only constrained by the limit of drilling.
“This next phase of deeper scout diamond drilling will give us an indication of the resource potential between 200-600m depth.”
Most recently, the gold explorer’s efforts have been focused on its Toweranna deposit, where positive early results were the catalyst for additional drilling.
The current deposit at Toweranna may only be the tip of the iceberg.
De Grey is currently completing the pre-feasibility study for the broader Pilbara project, and is aiming to prove up resources to 2 million ounces by the end of 2019. The bulk of the new ounces may come from Toweranna.
The RC drilling program at Toweranna totalled 10,126m, and those results will now for part of the Toweranna Deposit resource Upgrade currently in progress and which will seek to extend from the current Mineral Resource of 2.01Mt at 2.2g/t Au for 143,900oz.
The resource update is due in September.
The new drilling results confirm lateral extensions and additional stacked lodes and support an anticipated increase to the current open pit resource to 200m depth.
The potential for gold lodes to extend beyond 200m is being assessed with testing for mineralisation between 200-600m depth.