'One of the best we have seen': more high-grade gold hits for De Grey

Special Report: De Grey Mining is enjoying continued drilling success at its Pilbara gold project, including “one of the best intersections across the project area that we have seen”.

De Grey (ASX:DEG) is ramping up exploration activity in a 1.4 million ounce Pilbara gold project – near Port Hedland in Western Australia – to upgrade and expand its gold resources and discover new deposits.

Just 10 per cent of the mineralised zones have been drilled to a depth of 100m to 150m – which has already successfully defined 1.4 million ounces of gold.

There are over 40 identified, yet untested, soil anomalies.

At the Mallina deposit, follow up drilling returned 56m at 3.04 grams per tonne (g/t) of gold, with a higher grade core of 30m at 5.29 g/t.

Anything above 5 g/t is considered high grade.

Follow-up drilling to test this “significant zone of mineralisation” will be carried out shortly.

De Grey exploration manager Phil Tornatora said Mallina provided one of the best intersections across the project area that the company had seen.

“A wide zone of intense alteration and sulphide development with 56m of mineralisation demonstrates the large scale of this system,” he said.

An updated resource for the Mallina deposit of 3.83 million tonnes at 1.3g/t Au for 160,700oz was recently announced.

“The recent resource upgrade at Mallina is all above 100m, so there is plenty of opportunity for ongoing resource increases as we continue step out drilling,” Mr Tornatora said.

Follow up drilling at the 143,900-ounce Toweranna deposit also successfully confirmed gold mineralisation along the western zone and southern zone, De Grey told investors.

The high-grade gold in the individual gold-bearing veins and increased overall resource ounces “are expected to boost the shallow open pit mining potential of the deposit, plus improve overall open pit mine life and economics of the Pilbara gold project”, the company said.

Recent results included 3.97m @24.45 g/t Au from 172.3m.

Mr Tornatora said the high-grade gold is expected to continue through to the north and east and at depth, which the next program will test.

De Grey are currently close to completing an RC drilling program at the Farno JV with Novo Resources, targeting both the White Quartz Hill and Clarke prospects. Assays results are expected later this month.

De Grey Mining is a Stockhead advertiser.

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