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De Grey Mining Mallina gold results likely to add to 160,700-ounce resource

Step-out resource drilling has extended mineralisation along strike, beyond the existing resource.

Drilling at the Pilbara Gold Project
Drilling is ongoing at various deposits and prospects in the Pilbara Gold Project

De Grey Mining Limited (ASX:DEG) has received encouraging results from drilling at the Mallina deposit in WA’s Pilbara region which are likely to add to the existing 160,700-ounce resource.

Mallina forms part of the company’s broader Pilbara Gold Project near Port Hedland, which hosts a growing 1.4 million-ounce resource.

A program comprising four diamond tails for 464 metres and 15 reverse circulation (RC) holes for 1673 metres has been completed at Mallina with results extending mineralisation along strike beyond the existing resource.

More results expected

Results for the RC drilling, one of the diamond holes and the pre-collars of the three other diamond holes have been received with more results expected this month.

Best results are:

  • 4.93 metres at 1.23 g/t gold from 106.32 metres, including 1.19 metres at 3.73 g/t from 109.17 metres;
  • 5 metres 2.04 g/t from 81 metres;
  • 6 metres at 1.29 g/t from 70 metres, including 1 metre at 5.66 g/t from 70 metres;
  • 11 metres at 1.05 g/t from 101 metres, including 2 metres at 2.66 g/t from 106 metres;
  • 14 metres at 1.05 g/t from 130 metres;
  • 8 metres at 1.23 g/t from 62 metres, including 2 metres at 3.08 g/t from 65 metres; and
  • 14 metres at 1.59 g/t from 75 metres, including 4 metres at 3.17 g/t from 77 metres.

The RC drilling targeted a number of selected lodes with step out extensions both along strike and down dip.

An intersection of 5 metres at 2.03 g/t was intersected in one hole, which was a 50-metre step out to the west of the current resource in the Mallina Central Zone.

These holes and planned follow-up drilling is expected to add to the current Mallina resource base.

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

An additional two diamond holes drilled for metallurgical purposes have been partially assayed and are undergoing metallurgical test work with final results pending.

SAM survey underway

De Grey has started a 5x1 kilometre detailed Sub-Audio Magnetic (SAM) geophysical survey, which is expected to finish in about  1-2 weeks.

This is designed to provide greater ability to target along strike extensions by providing more confidence in the lateral extents of the controlling mineralised structures and allow for larger drill programs to be designed going forward.

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

These larger drill programs are expected to enable larger and more rapid resource extensions to be defined.

Further resource extension drill programs are to be planned based on the results of the SAM survey and the pending diamond core.

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Watch

De Grey Mining 'adding to resource base in next 6 months' in the Pilbara

De Grey Mining (ASX: DEG) chairman Simon Lill speaks to Proactive Investors about exploration and development works, and the company's growing gold reserves and resources, in the Pilbara region of Western Australia. Lill also updates on the acquisition of of Indee Gold Pty Ltd.

on 28/2/19

3 min read