The decision to increase scale has arisen as a result of:
• An increase in resources to 1.4 million gold ounces from the previous 1 million gold ounces on which the 2017 scoping study was based;
• Recent exploration results coupled with the ongoing exploration potential of De Grey’s tenements; and
• The recent material increases in gold recoveries to between 90% to 94% and a simplified processing plant flowsheet.
The decision to increase the development study scale is further supported by improved gold outlook and recent price increases along with the potential for economies of scale with reduced unit operating cost.
The company is also confident in defining new resource additions with the potential for higher grade underground lodes below at least 4 deposits.
De Grey chairman Simon Lill said: “De Grey is an exciting Australian gold growth story with a material and near-term development opportunity in one of the world’s best mining jurisdictions.
“Our vision is very simple; we have our foot on a significant new gold province, two drill rigs on site, aiming to grow resources towards 3 million ounces and ultimately transition De Grey into a new Australian gold producer.”
Optimisations based on new operating and mining costs
GR Engineering Services is nearing completion on design and costing of a proposed 2 Mtpa processing plant.
This work will be completed to PFS standard (+/- 20%) and will form a critical aspect of defining operating costs to be used in further open pit and underground optimisations and evaluations.
Cube Consulting will then undertake revised open pit optimisations based on the new operating and mining costs.
From this work any additional drilling to expand both open pit and underground resources, metallurgy and geotechnical activities and associated timeframes will be determined.
Two drilling rigs operating
To rapidly advance resource extension drilling, two drilling rigs are already operating.
A diamond rig is continuing to target the encouraging underground high-grade lodes and an RC rig is currently targeting the shallower targets beneath the existing Withnell pits.