Strong drilling results set De Grey up for bigger gold resource at Pilbara project
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Special report: De Grey Mining is set to deliver a bigger gold resource in the Pilbara after first drilling at the Amanda prospect in more than a decade has extended mineralisation and delivered high grades.
The junior explorer, one of the pioneers of the Pilbara gold nugget rush, has reported positive drill results of 14m at 4.94 grams per tonne (g/t) gold from 19m, including 6m at 10.85g/t gold from 20m.
Anything above 5 g/t is considered high grade. The shallowest hit was made at just 9m below surface and all the intercepts were less than 50m.
De Grey (ASX:DEG) shares gained 5 per cent to an intraday high of 20c.
The Amanda prospect lies on the Tabba Tabba Thrust, which is a large mineralised structure that extends into the 287,700-ounce Wingina prospect 8km to the southwest.
The Amanda deposit already has a resource of 35,400 ounces in two separate zones – Amanda and Amanda East.
The two zones are around 500m apart, with limited drilling between the deposits and the mineralisation remains open at depth and along strike to the east and west.
There are also extensive undrilled gold anomalies along the 60km strike length of the Tabba Tabba Thrust.
The 8km between the Amanda and Wingina prospects is a high priority target for De Grey.
The company says these latest results along with previous results highlight the longer-term potential for higher grade plunging gold shoots.
The Pilbara gold project hosts over 200km of mineralised shear zones spanning a 1480 sq km landholding.
And just 10 per cent of the shear zones have received detailed shallow reverse circulation and diamond drilling down to a depth of 100m to 150m.
De Grey is ramping up exploration in its drive to upgrade and expand the known resources, as well as discover new deposits.
There are over 40 identified soil anomalies that are still to be tested. Planning is currently underway for more systematic drilling.
This special report is brought to you by De Grey Mining.
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