Highlight intersections include:
• 5 metres at 7.8 g/t gold from 43 metres including 2 metres at 14.95 g/t gold;
• 2 metres at 11.14 g/t gold from 61 metres including 1 metre at 20.6 g/t gold; and
• 8 metres at 20.11 g/t gold from 168 metres including 4 metres at 38.5 g/t gold.
West Lode 1 long-section showing new drill hole intercepts and growing plunging shoot geometry
De Grey chairman Simon Lill said: “These drilling results are extremely encouraging.
“We have set an initial resource target of 2 million ounces by the end of 2019 and we believe Withnell and Toweranna provide a clear runway toward that number.
“Drilling is advancing at both deposits with 2 rigs operating, so there will be a steady stream of exploration results in the forthcoming months.”
Withnell is currently the largest deposit (6.37 million tonnes at 1.8 g/t gold for 377,300 ounces) within the project area.
The gold mineralisation is hosted by the 60 kilometres long, east-west trending regional scale Mallina Shear Zone.
The Mallina Shear Zone is considered highly prospective for further discoveries both along strike under the thin veneer of sand cover and at depth beneath the existing shallow resources.
Withnell, Toweranna and Wingina deposits show considerable potential to substantially increase underground resources that are likely to positively impact the expanded 2 million tonnes per annum pre-feasibility study (PFS) currently underway.
These latest drill results further support the Withnell Underground Exploration Target of 2.6 to 3.5 million tonnes at 4 g/t to 6.5 g/t gold for 330,000 to 720,000 ounces.
High-grade drill results continue to enhance resource potential
A +10,000 metre reverse circulation and diamond drilling program continues to target the high-grade lodes beneath the proposed Withnell Open Pit.
The gold mineralisation occurs as multiple vertical lodes associated with pyrite veining and alteration and results are starting to highlight a series of high-grade plunging shoots which is expected to aid future drill targeting and increase the positive hit rate.
The current program is designed to expand resources immediately below the 1300 metres long proposed open pit and provide scope to extend mining underground on high-grade vertical lodes.