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De Grey Mining's positive drill results extend Withnell deposit at Mallina Gold Project

The Withnell deposit has been extended 100 metres deeper along the entire 1.2-kilometre strike length with three high grade and west plunging shoots developing.

De Grey Mining Ltd - De Grey Mining's positive drill results extend Withnell gold deposit at Mallina
Drilling continues to target resource extensions on a 100 metre by 100 metre basis

De Grey Mining Ltd (ASX:DEG) has received high-grade gold drill results that have extended Withnell deposit within the Mallina Gold Project near Port Hedland in Western Australia.

The drilling program comprised four reverse circulation (RC) holes totalling 846 metres and 14 diamond holes totalling 4,911 metres of diamond core as well as 1,824 metres of RC pre-collars.

Results from Lode 1 include 3 metres at 17.1 g/t gold from 91 metres, including 1 metre at 43.6 g/t from 92 metres, and 5.1 metres at 9.9 g/t from 338.9 metres, including 0.5 metres at 56.9 g/t from 341.75 metres.

Scale and grade "important aspects”

Technical director Andy Beckwith said: “Scale and grade are the two most important aspects of the Withnell deposit, which is a large 1.2-kilometre-long and highly mineralised gold system that remains open both along strike and at depth.

“The average grade of the underground resource is 4.1 g/t which compares favourably to existing Western Australian operating underground mines.

“This latest round of drilling demonstrates the dominant Lode 1 now extends a further 100 metres below the current resource along the entire 1.2-kilometre strike length and down to 350 metres below the surface.”

Beckwith added: “Importantly, within this 1.2-kilometre strike length, Lode 1 appears to be developing into three west plunging higher-grade shoots.

“De Grey plans to continue systematic 100 metres by 100 metres step-out drilling to extend and outline the mineralisation to a nominal 500m depth.”

High-grade results

Other results from the prioritised sampling of Lode 1 were:

  • 6.13 metres at 5.2 g/t from 368.53 metres; and
  • 6 metres at 3.3 g/t from 239 metres.

The shallow high-grade, 3 metres at 17.1 g/t intersected at the western end of the deposit provides added scope to extend the western-most plunging shoot laterally and at depth.

Assays for most parallel lodes remain pending parallel lodes but notable results to date include:

  • 7 metres at 2.2 g/t from 85 metres in Lode 2; and
  • 0.67 metres at 16.1 g/t from 476.6 metres in Lode 12.

Future drilling plans

Diamond drilling is continuing at Withnell deposit with hole NDD151 underway and this is expected to take 2-3 weeks to complete.

This hole is targeting Lode 1 from the south while aiming to assess the southern parallel lodes in greater detail.

Upon completion of NDD151 logging and full sampling of all the holes will be finalised and once assays are received during January, an update of the resource model will be undertaken on all drilling completed during 2019.

Planning of new priority holes will also be undertaken.

Second drill rig mobilised

A second diamond rig has mobilised to Mallina to complete a program of core extensions to early RC drill holes.

This drilling is expected to continue for about 2-3 weeks with two RC drill rigs expected to arrive in the coming few days to undertake around 8,000-10,000 metres of resource extension drilling at Mallina prior to the Christmas break.

Results of this drilling will be expected during January and will be included in a resource update on the Mallina deposit.

At Toweranna, the final assay results of the previously drilled diamond core are expected to be finalised shortly and upon finalisation, the Toweranna resource model will also be updated.

Quick facts: De Grey Mining Limited

Price: 0.91 AUD

Market: ASX
Market Cap: $1.07 billion

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