viewDe Grey Mining Limited

De Grey Mining rides Hemi gold wave as shares hit two-year high on new broad high-grade results

“Early drilling at Hemi has produced some of the best discovery intersections that I have seen,” said exploration manager Phil Tornatora.

De Grey Mining Limited - De Grey Mining rides Hemi gold wave as shares hit 7-year high on new broad high-grade results
Aircore drilling at Hemi in the Mallina project with an RC rig in the background

De Grey Mining Limited (ASX:DEG) (OTCMKTS:DGMLF) (FRA:DGD) continues to ride the wave generated by the Hemi gold discovery within the Mallina project in WA’s Pilbara region with shares hitting a new two-year high.

Further high-grade results from reverse circulation (RC) drilling have confirmed a large-scale gold system at Hemi with shares up almost 46% to 27 cents on strong volume of almost 24 million, up from 4.6 cents on February 2.

93 metres at 3.3 g/t

A highlight was a 93-metre continuous gold zone from 39 metres that assayed 3.3 g/t, including 21 metres at 4.7 g/t, at the Brolga Zone.

The results prompted DEG’s exploration manager Phil Tornatora to state: “Early drilling at Hemi has produced some of the best discovery intersections that I have seen.

“Drilling to date shows exceptionally wide, continuous and good grade gold mineralisation.”

The 93-metre intersection at Brolga correlates with previous shallow aircore gold results returned directly above.

Sulphide zone expanded

Partial results from another hole extending 40 metres down dip returned 51 metres at 2.2 g/t from 98 metres, including 8 metres at 4.1 g/t, and 12 metres at 1.6 g/t from 160 metres

The sulphide zone has been expanded to +200 metres wide and potential for +320 metres of strike with diamond drilling underway.

Mallina Gold Project showing main gold deposits and the new Hemi discovery.

Aquila Zone results

At Aquila Zone a northeast trend has been defined over more than 750 metres of strike and up to 50 metres wide.

Best results from this zone are:

  • 11 metres at 3.0 g/t from 193 metres finishing in high-grade mineralisation of 4 metres-plus at 6.5 g/t;
  • 38 metres at 3.4 g/t from 55 metres including 9 metres at 7.4 g/t, 50 metres to the northeast; and
  • 42 metres-plus at 2.7 g/t from 96 metres including 4 metres at 4.2 g/t, 480 metres along strike to the northeast and finishes in mineralisation.

Mineralisation has been confirmed to 180 metres below surface and remains open.

Three rigs on site

Tornatora said: “Geological indications suggest that Hemi may be more of an intrusion-related style of gold system rather than the more typical orogenic shear hosted style deposits of the Pilbara and other WA goldfields.

"We have three rigs on site advancing this exciting new discovery.”

Ongoing RC and aircore drilling continue to define the sulphide alteration along strike, over increased widths and down dip on generally wide-spaced sections between 80-160 metres apart.

Since recommencing drilling in January, 13 RC holes and 3 RC pre-collars totalling 2784 metres and 115 aircore holes totalling 10,360 metres have been completed at Hemi.

Full assays remain pending for 15 RC holes and a further 47 aircore holes.

Diamond drilling

A diamond core rig is on-site and has started with HEDD001 at the Brolga Zone targeting depth extensions and increased geological controls.

De Grey’s drilling at Hemi is targeting along strike and down dip extensions of the sulphide-rich alteration zones to outline the potential scale of the deposit prior to infill resource definition drilling.

Quick facts: De Grey Mining Limited

Price: 1.275 AUD

Market: ASX
Market Cap: $1.62 billion

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De Grey Mining's Hemi discovery 'getting bigger and bigger' as drilling advances

De Grey Mining Limited's (ASX:DEG) exploration manager Phil Tornatora speaks to Proactive London's Andrew Scott soon after releasing updated drilling results for the Brolga Zone within the project in Western Australia. The latest RC drilling results at the Brolga Zone has defined strong gold...

on 27/3/20

3 min read