viewDe Grey Mining Limited

De Grey Mining produces 3.34 g/t gold concentrate from Pilbara trench sample

Neighbour Rio Tinto unveiled a copper-gold discovery in the region yesterday, further away from Port Hedland.

Bulk sample results from the first 4 metres of a second Loudens West trench
Bulk sample results from the first 4 metres of a second Loudens West trench

De Grey Mining Limited (ASX:DEG) has continued to uncover conglomerate gold mineralisation during trenching at its Pilbara Gold Project (PGP) near the West Pilbara town of Port Hedland in Western Australia.

The company said continued trenching and bulk sampling at Loudens West area had extended visible gold to a 20-metre strike length in the first trench and over the first 4 metres of the second trench.

READ: De Grey Mining to follow-up encouraging gold results at Farno McMahon JV

Detailing its findings for the first Loudens West trench, De Grey said conglomerate had been exposed along the 20-metre strike and visible coarse gold was seen in the entire trench except for a metre.

A 250-kilogram sample from the trench produced a 1.502 grams gold concentrate.

Average gravity gold concentrates were 3.34 g/t from the first trench.

READ: De Grey Mining enhances Pilbara Gold Project’s development study scale to 2Mtpa


The second Loudens West trench was on the same creek line, near a historical prospecting shaft where the company previously found gold nuggets in rock debris.

Four samples have been collected, with results back from coarse-gravity-separated gold greater than 1.2 millimetres and fine fraction results (less than 1.2 millimetres) still pending.

A highlighted 250-kilogram sample produced a 1.083-gram gold concentrate.

Average gravity gold concentrates were 2.36 g/t from the second trench.

Sampling in the second trench will continue before the exploration team moves to Loudens South target area.

READ: De Grey Mining enhances Pilbara Gold Project potential with high gold recoveries

A 250-kilogram sample from Loudens Trench one produced a 1.502-gram gold concentrate

Conglomerate averages in the Loudens West area are a thickness of between 1 and 2 metres.

De Grey reported today: “Overall the results from the Loudens West trial bulk sampling indicate the average coarse gold concentrate is around 3 g/t average."

The company noted the Loudens West mineralisation could be used as feed for a proposed plant for its project but flagged the source was not part of studies underway.

De Grey told the market: “Gold grades recorded to date suggest the conglomerate gold mineralisation could potentially provide an additional source of high-grade feed to the proposed 2 million tonnes per annum plant De Grey is evaluating to treat the conventional shear zone hosted resources at the PGP.”

The Pilbara Gold project area includes conglomerate and structural gold mineralisation.

Gold ounces at the project have now reached 1.4 million ounces, a 40% expansion on the count used in the company’s 2017 study.

The company’s ongoing development study is incorporating the additional ounces to expand its scale to a 2 million tonnes per annum plant throughput.

Gold recoveries have been materially increased to 90-94%.

A simplified processing plant flowsheet has been produced.

A 250-kilogram sample from the second trench produced a 1.083-gram gold concentrate

Pilbara Gold Rush fervour

Gold prospectivity in the Pilbara has been of particular interest in recent weeks, with Independence Group (ASX:IGO), Artemis Resources Ltd (ASX:ARV) (FRA:ATY) (OTCMKTS:ARTTF) and Metalicity Ltd (ASX:MCT) securing East Pilbara ground following a big discovery from Greatland Gold PLC (LON:GGP).

Greatland’s Paterson province drawcard intersection featured 275 metres grading 4.77 g/t gold and 0.61% copper.

Yesterday, fellow copper-gold holder Rio Tinto Limited (ASX:RIO) (LON:RIO) (NYSE:RIO) (OTCMKTS:RTNTF) unveiled positive results from its Winu project in Paterson province.

Rio’s Winu Copper-Gold-Silver Project in the Yeneena Basin is 350 kilometres southeast of Port Hedland.

Best intersections included 104 metres grading 0.8% copper, 0.28 g/t gold and 4.35 g/t silver.


Quick facts: De Grey Mining Limited

Price: 0.185 AUD

Market: ASX
Market Cap: $192.13 m

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