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De Grey Mining higher again after defining major gold extension at Hemi discovery

Shallow aircore drilling has defined an extension at Brolga that is approximately 1,000 metres long by 200 metres wide.

De Grey Mining Limited - De Grey Mining higher again after defining major gold extension at Hemi discovery
Results enhance the potential to expand near-surface open pit resources

De Grey Mining Limited (ASX:DEG) (OTCMKTS:DGMLF) (FRA:DGD) has continued a run of share price gains with drilling defining a major extension of Brolga zone at the Hemi gold discovery in WA’s Pilbara region.

This extension of the Brolga intrusion defined by initial shallow aircore drilling is approximately 1,000 metres long by 200 metres wide and enhances the potential to expand near-surface open pit resources.

Results include 16 metres at 2.4 g/t from 40 metres, 8 metres at 2.2 g/t from 52 metres and 4 metres at 5.0 g/t from 60 metres.

World-class potential

De Grey's new managing director Glenn Jardine said: ”Hemi continues to demonstrate potential to be a large-scale, world-class deposit and the project area continues to demonstrate its prospectivity for further discoveries.

"It has been a sharp learning curve at Hemi for the exploration team and this new discovery is a credit to their targeting from that learning.

"The new discovery appears to be analogous to the early stages of the initial Brolga discovery.”

Location of Mallina Gold Project, 2.2-million-ounce resource areas and new Hemi discovery.

Around 90% of results from new shallow aircore at Brolga are still pending and the intrusive body remains open along strike to the south.

Shares higher

Securities have been more than 12% higher in early trade at 45 cents, continuing a recent run on the back of strong results.

Shares are up from 16.5 cents on March 16 to 46 cents on May 26 while the market cap is now approximately $468.5 million.

RC and diamond results

Additional reverse circulation (RC) and diamond results at Brolga include:

  • 55.3 metres at 1.9 g/t from 184.7 metres;
  • 6.13 metres at 4.8 g/t from 220 metres;
  • 18.21 metres at 1.5 g/t from 254.79 metres;
  • 2 metres at 10 g/t from 161 metres; and
  • 16 metres at 1.4 g/t from 177 metres.

Hemi is a new gold discovery, where mineralisation is hosted in a series of intrusions associated with stringer and disseminated sulphide-rich zones.

This style of mineralisation is new to the Pilbara region and shows a scale of mineralisation not seen in the project previously.

Drilling will accelerate

Drilling is continuing to determine the extent of the Hemi mineralisation with the expectation that overall Mallina project resources will increase from the current 2.2 million ounces.

Jardine said the company saw a lot more value still to come for investors and with this in mind would this month increase its drilling effort from four to six rigs.

"The focus of drilling will continue to be on defining the extent of known mineralisation at Hemi and new discoveries moving into the many regional intrusion and shear zone targets,” he said.

Aircore drilling is advancing to the immediate southwest of Hemi and will then begin testing to the northeast towards Scooby.

An additional aircore rig is expected to arrive on-site later this month to start regional drilling along the prospective 15 kilometres structural corridor including the four untested intrusions - Scooby, Antwerp, Shaggy and Alectroenas - and various shear zone targets.

“Blessed” with infrastructure

Hemi, which is within 60km of Port Hedland, is shaping up as a world-class, large-scale deposit.

The new MD said: “To complement the scale and extent of near-surface mineralisation at Hemi, the project is blessed with world-class infrastructure.

“Everything that we need is on our doorstep including high voltage power, gas pipelines and major highways all within 25 kilometres of the project area and an hour drive from Port Hedland, a major transport and services hub.

“We are also highly encouraged to continue our early-stage environmental, infrastructure and metallurgical studies.”

There are at least four other look-alike intrusion targets already defined in the immediate region surrounding Hemi, three of which have known ore grade mineralisation.

A detailed airborne magnetic survey was recently completed and will be used to further improve and enhance targeting.

Quick facts: De Grey Mining Limited

Price: 0.795 AUD

ASX:DEG
Market: ASX
Market Cap: $932.59 m
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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

4 min read