Special Report: De Grey could significantly expand near-surface open pit resources at its Hemi discovery after drilling defined a major extension of the Brolga intrusion.

Wide-spaced aircore drilling defined a 1,000m long by 200m wide extension to the south of the Brolga zone with assays returning results such as 16m grading 2.4 grams per tonne (g/t) gold from a depth of 40m and 4m at 5g/t gold from 60m.

De Grey Mining (ASX:DEG) added that about 90 per cent of results from the new aircore drilling were still pending.

Meanwhile, reverse circulation and diamond drilling has also returned 55.3m at 1.9g/t gold from 184.7m, 6.13m at 4.8g/t gold from 220m and 18.21g/t at 1.5g/t gold from 254.79m.

The company’s new managing director, Glenn Jardine, says that Hemi continues to demonstrate its potential to be a large-scale, world class deposit while the broader project area is prospective for further discoveries.

“It has been a sharp learning curve at Hemi for the exploration team and this new discovery is a credit to their targeting from that learning. The new discovery appears to be analogous to the early stages of the initial Brolga discovery,” he added.

“We see a lot more value still to come for investors in De Grey. With this in mind, we are increasing our drilling effort from four rigs to six rigs during June.

“The focus of drilling will continue to be on defining the extent of known mineralisation at Hemi and new discoveries moving into the many regional intrusion and shear zone targets.”

Major Brolga extension defined in shallow aircore drilling Pic: Supplied

Late last month, drilling at the Aquila zone returned thick intersections of gold with results of up to 139.5m at 0.7g/t gold from 103.89m and 27m at 2.7g/t gold.

The company has also started preliminary metallurgical testwork on oxide, transition and primary mineralisation samples from the Brolga zone to provide indications as to the potential process flowsheet for the deposit and recoveries that could be expected.

De Grey’s Hemi discovery in mid-December 2019 under a shallow ‘blanket’ of transported cover opened up a new style of mineralisation in Western Australia’s Pilbara region that nobody had found before.

While the company has already defined a 2.2-million-ounce resource at its broader Mallina project, Hemi backs up De Grey’s belief that the Mallina Basin is a large and highly prospective gold province that could yield multi-million-ounce gold deposits.

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This story was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.