- De Grey Mining (ASX:DEG) has released encouraging drill results from its diamond drilling program at Toweranna deposit of the Pilbara Gold Project
- Drilling is focused on extending the current resource and testing mineralisation between a 200 metre and 700 metre depth
- Strong high-grade gold was intersected as well as quartz veins many of which have grades of over 20 grams per tonne of gold
- In early 2020, De Grey will update the resource following more drilling
- Shares are up 2.04 per cent and shares are trading for 5 cents each
De Grey Mining has announced further significant drilling results from the resource extension diamond drilling program at Toweranna.
The company’s drilling programs since July this year have been focused on extending Toweranna’s current resource of 5.3 million tonnes at 2.1 tonnes of gold for 356,600 ounces.
Toweranna is part of De Grey’s Pilbara Gold Project which is 60 kilometres south of Port Hedland in the Pilbara region.
Current diamond drilling is testing the mineralisation between a 200-700 metre depth.
The holes are generally wide spaced however below the 400 metre depth, the hole spacings increase up to 160 metres apart.
New and encouraging gold results include 6 metres at 9 grams per tonne of gold from 300 metres, 6.7 metres at 5.1 grams per tonne of gold from 282.51 metres, 3.55 metres at 4.2 grams per tonne of gold from 303.85 metres, 3.45 metres at 3.1 grams per tonne of gold from 325.15 metres, 10.23 metres at 2.9 grams per tonne of gold from 384.77 metres.
Strong high-grade gold mineralisation was intersected along the sediment contact zone in hole TRC174D, with mineralisation clearly developing in the sediments 4.65 metres at 8.3 grams per tonne of gold.
The deepest gold mineralisation at Toweranna has now been intersected at 720 metres below surface, or 520 metres below the current open pit resource.
This drilling program also provides a better definition of the quartz veins and allows for more accurate sampling of the individual quartz veins within the various lodes.
The individual veins carry very high “niche” grades compared to the enclosing alteration with many consistently grading over 20 grams per tonne of gold.
These high-grade quartz vein results include: 0.35 metres at 94.6 grams per tonne of gold from 666.15 metres, 0.38 metres at 51.7 grams per tonne of gold from 557.62 metres, 0.95 metres at 34.3 grams per tonne of gold from 285.62 metres and 0.47 metres at 33.0 grams per tonne of gold from 258.26 metres.
Technical Director Andy Beckwith is pleased with the results.
“The wide-spaced diamond drilling confirms continuation of numerous stacked high grade gold veins throughout the intrusion and adjacent sediments which provides significant resource upside potential,” Andy said.
This drilling has essentially shown better than a threefold extension of the mineralised system, with high grade gold veins extending more than 500m beyond the current open pit resources which contain 5.3Mt @ 2.1/t Au for 356,600oz,” he added.
De Grey is currently evaluating the ore sorting and crushing process at the TOMRA facility in New South Wales and a detailed comparative gold assays will commence shortly.
Following drilling, a new resource estimate will be undertaken.
De Grey is up 2.04 per cent and shares are trading for 5 cents each at market close.