Join our daily newsletter At The Bell to receive exclusive market insights
- De Grey Mining (DEG) strikes 359 metres of gold mineralisation through extension and infill drilling at the Hemi zone within its Mallina gold project in WA
- This major intersection lies 200 metres below the Diucon MRE area and, according to De Grey represents one of the best and deepest intercepts drilled at Hemi
- The mineralisation occurs beneath lightly mineralised sediments extending to 100 metres, providing the potential to discover significant zones of intrusion-hosted mineralisation
- De Grey says there’s an opportunity to increase open pit and underground production potential following the pre-feasibility study currently underway
- Company shares are up 4.72 per cent to 94 cents at 10:09 am AEST
De Grey Mining (DEG) has reported a major new gold intersection at the Hemi zone within its Mallina gold project in Western Australia.
Resource extension and infill drilling at the Diucon deposit, west of Hemi, has intersected 359.4 metres at 1.2 grams per tonne (g/t) gold through the Diucon mineralised intrusion from 530 metres downhole in HEDD128.
The drillhole comprises intervals of 97.1 metres at 2.6 g/t gold from 580.92 metres including 19.3 metres at 7.4 g/t gold and two metres at 22.5 g/t gold.
This intersection lies approximately 200 metres below the Diucon mineral resource estimate (MRE) area and occurs from a 450- to 700-metre vertical depth.
De Grey said it represented one of the best and deepest intercepts drilled at Hemi.
“This new intercept has something for everyone: 200-metre depth extension to the May resource, intrusion true width increasing to approximately 300 metres, open at depth and down-plunge, with increased large scale open pit, large scale underground and selective high-grade underground mining potential,” General Manager Exploration Phil Tornatora said.
The company said shallow mineralisation remained open to the west of the Diucon and Eagle deposits towards anomalous gold intersections at Antwerp.
De Grey said it also believed there was potential to discover significant zones of hidden intrusion-hosted mineralisation at Hemi and Greater Hemi due to the mineralisation occurring beneath lightly mineralised sediments that extend to a 100-metre depth.
Results from other drillholes outside the Diucon MRE area include 26.9 metres at 1.9 g/t gold from 485.03 metres and two metres at 14.2 g/t gold from 203 metres.
Further, the company announced results that weren’t part of the May Diucon MRE. These include 51.9 metres at 2.4 g/t gold from 195.08 metres, 50 metres at 2.8 g/t gold from 298 metres, 9.8 metres at 6.2 g/t gold from 182 metres and 72 metres at 1.1 g/t gold from 219 metres.
The current pre-feasibility study (PFS) for the Mallina project is based on the May MRE and the new result in HEDD128 and other new extensional results at Diucon reportedly provide the opportunity to increase open pit and underground production potential post-PFS.
De Grey is progressing diamond drilling at different areas and intrusions within Hemi.
Company shares were up 4.72 per cent to 94 cents at 10:09 am AEST.
-1200x645-380x200.jpg)
