Two million oz target beckons as De Grey discovers more high-grade gold
Special Report: De Grey Mining has discovered more high-grade gold at the Withnell deposit, a vital part of the already significant 1.4 million-ounce Pilbara Gold Project (PGP) in Western Australia.
De Grey (ASX:DEG) has a target to define a minimum PGP gold resource of 2 million ounces by the end of 2019.
The explorer believes Withnell and Toweranna provide “a clear runway toward that number”, which is emphatically supported by ongoing drilling success at both deposits.
Recent drilling prompted De Grey to outline a big exploration target of 800,000 ounces of contained gold at Toweranna, inclusive of the existing 143,900 ounce resource.
The 377,000-ounce Withnell is currently the largest deposit at the PGP but, like Toweranna, there’s potential to grow that resource significantly.
De Grey is drilling to expand resources immediately below the proposed 1300m long Withnell open pit and provide scope to extend mining underground on high grade vertical lodes.
There’s an underground exploration target of between 330,000oz and 720,000oz at Withnell, comprising 2.6 – 3.5 million tonnes with estimated grades between 4 and 6.5 grams per tonne.
New high-grade drilling results continue to support this target.
Deeper drilling, supporting the Exploration Target, was very successful and included 8 metres grading 20.11 grams per tonne, 168 metres from surface.
De Grey is targeting a 5 g/t resource as it is likely to support an underground development.
If De Grey can define a 5 g/t underground deposit it will provide a source of higher grade feed to a plant, which should support economics for a plant development, currently under consideration through a Pre-Feasibility Study (PFS) being conducted by GR Engineering.
Mineralisation at Withnell has previously been defined to extend to over 400m depth and remains open, the company says.
De Grey says the Withnell, Toweranna and Wingina deposits all show potential to substantially increase underground resources.
They are all likely to positively impact the expanded 2 million tonne per annum Pre-Feasibility Study (PFS) which is currently under way.
Chairman, Simon Lill says these drilling results are extremely encouraging.
“We have set an initial resource target of 2 million ounces by the end of 2019 and we believe Withnell and Toweranna provide a clear runway toward that number,” he says.
“Drilling is advancing at both deposits with two rigs operating, so there will be a steady stream of exploration results in the forthcoming months.”