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De Grey Mining shares double after Hemi drilling confirms potential for major gold discovery

The newly discovered shallow high-grade gold zones provide an excellent opportunity to increase resources and further de-risk the company’s path to production.

De Grey Mining Ltd - De Grey Mining shares surge after Hemi drilling confirms potential for major gold discovery
De Grey’s shares have traded up to 115% higher to 9.9 cents intra-day

De Grey Mining Ltd (ASX:DEG) has revealed outstanding initial gold results from follow-up aircore drilling at the newly discovered Hemi Prospect within the Mallina Gold Project in WA.

Substantial thick and high-grade gold mineralisation was intersected on two sections 640 metres apart with the mineralisation open in all directions and at depth.

Section A – 30 metres wide to 100 metres depth (oxide and fresh):

  • 24 metres at 7.5 g/t gold from 126 metres in BWAC315, including 18 metres at 8.6 g/t;
  • 49 metres at 3.7 g/t gold from 65 metres in BWAC309, including 18 metres at 6.6 g/t; and
  • 36 metres at 4.0 g/t from 39 metres in BWAC245, including 11 metres at 8.9 g/t.

Hemi Prospect - Section A

Section B - +60 metres wide gold zone to 20 metres depth (oxide):

  • 24 metres at 4.2 g/t gold from 36 metres in BWAC312, including 10 metres at 7.4 g/t;
  • 15 metres at 2.5 g/t gold from 33 metres in BWAC313; and
  • 21 metres at 2.5 g/t from 36 metres in BWAC258.

Hemi Prospect - Section B

The aircore program remains ongoing with a total of 57 new holes (BWAC309 to BWAC365) completed for a total of 4709 metres to date. Results have been reported only for the first seven holes.

De Grey technical director Andy Beckwith said: “For an exploration geologist, these results are both satisfying and exciting.

“Hemi’s shallow high-grade gold zones provide an excellent opportunity to increase resources and further derisk our path to production.

“The individual assays down hole are very robust creating solid high-grade gold zones over considerable thicknesses which we expect to continue at greater depth.

Mallina Gold Project showing main gold deposits

“On Section A, drilling has defined a sub-vertical to south-dipping 30-metre wide gold zone hosted in sediments.

“Section B shows a potential +60-metre wide gold zone in an intrusive with drilling yet to be completed below the oxide zone.

“We currently interpret that the two mineralised zones are structurally related, suggesting we could be drilling a major new gold discovery.

“Aircore drilling will continue to define the lateral extent, orientation and potential scale of the mineralised system.

“Follow-up RC and diamond drilling will commence shortly with a view to establishing an initial inferred resource.”

Hemi Prospect drilling plan showing new aircore holes and planned holes

De Grey’s regional and wide-spaced aircore program aims to systematically test the various large prospective corridors throughout the project for new large-scale gold deposits.

The positive drill results at Hemi now provide a key focus for near term resource definition drilling.

Accordingly, a reverse circulation and diamond rig are being mobilised to site to commence this deeper and more detailed drilling.

This drilling will look to test deeper on the known sections and then step out on parallel sections 80 metres apart.

Quick facts: De Grey Mining Limited

Price: 1.1 AUD

ASX:DEG
Market: ASX
Market Cap: $1.4 billion
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