The spotlight is on De Grey’s Egina gold project after Novo buys up core tenements
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Special Report: The purchase of private explorer Farno-McMahon by Canada’s Novo Resources confirms the potential of De Grey Mining’s tenement holdings in the Egina region, south of Port Hedland in Western Australia.
One of the Farno tenements — covered by a joint venture with De Grey (ASX:DEG) — includes the Clarke prospect, which boasts a defined 1.5km long gold target and returned high grade rock chip samples up to 28.3 grams per tonne (g/t) of gold.
Another prospect on the Farno tenements – Fir – has recorded a gold intersection of 1m @ 328.4 g/t.
Anything over 5g/t is considered high-grade.
De Grey has already exercised an option to earn 75 per cent of the Farno tenement by spending $4m over four years and is planning the first significant drilling program across the tenement since 2005 in October.
Novo president Quinton Hennigh said Egina has long been known as an important Pilbara gold district and had similarities to its Comet Well and Purdy’s Reward projects.
“This makes Egina particularly intriguing,” Mr Hennigh said.
“In our view, not only is there potential for the discovery of gold-bearing conglomerates, there is also very good potential for significant surface gold deposits occurring in modern lag gravels.
“Acquisition of the core tenements at Egina consolidates Novo’s position in this potentially very important gold district.”
The Pilbara story is alive and well
The world’s most productive gold region, South Africa’s Witwatersrand Basin, is famous for its similar age and geological formation.
A recent flurry of announcements from Pilbara players indicates the Pilbara is a highly prospective region.
The Pilbara gold story took off mid-last year after Novo uncovered what was described as “watermelon seed nuggets” south of Karratha at their Purdy’s Reward project.
More to come from De Grey
De Grey is ramping up exploration to upgrade and expand known resources, as well as discover new deposits – the company has identified a large pipeline of more than 40 untested targets.
A resource update is currently underway and expected to be released in October.
Once the new resource model has been completed, open pit mining optimisations will be undertaken as part of the wider Pilbara Gold open pit mining pre-feasibility study.
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