De Grey Mining (ASX:DEG) - Chairman, Simon Lill
Chairman, Simon Lill
Source: Azure Minerals
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  • The total gold mineral resource for De Grey Mining’s (DEG) Mallina Project in Western Australia has increased by 29 per cent
  • This new mineral resource comes from De Grey’s Withnell Open Pit and Underground, and Toweranna Open Pit and Underground
  • The company is continuing with drilling at its Hemi Discovery, while the next results are expected early next week
  • De Grey is up a slight 4.35 per cent on the market in mid-morning trade and shares are selling for 24 cents each

The total gold mineral resource for De Grey Mining’s (DEG) Mallina Project has increased by 29 per cent.

The new mineral resource for the project now sits at 37.44 million tonnes at 1.8g/t gold for 2.2 million ounces.

Updated resource models have come from the Withnell Open Pit and Underground, and the Toweranna Open Pit and Underground.

“We are very pleased to have achieved 2.2 million ounces based on all drilling to the end of 2019,” Technical Director Andy Beckwith commented.

“Importantly, we have maintained the high average grade of 1.8g/t, and all deposits commenced from the surface, making them readily amenable to open-pit mining and all remain open,” he added.

De Grey’s Mallina Project is located approximately 60 kilometres south of Port Headland in the Mallina Province of Western Australia.

The company has been focused on upgrading and expanding the known resources of Mallina as the project has the potential to define significant additional resource ounces.

All of these results come from De Grey’s 2019 drilling program which terminated in December 2019.

Withnell Deposit

Drilling at Withnell focused on exploring the depth extensions, as well as improving the outline of high-grade lodes situated underneath the existing shallow open pit.

Withnell Open Pit

The resource for the Withnell Open Pit now sits at 4.99 million tonnes for 282,900 ounces, and 84 per cent of that lies within the indicated and measured categories.

Withnell Underground

The resource for Withnell Underground increased by nine per cent to read 2.50 million tonnes at 3.9g/t gold for 317,100 ounces.

Mineralisation remains open and De Grey has planned further drilling to improve the specific resource categories.

Toweranna Deposit

Toweranna Open Pit

The new Toweranna Open Pit resource is now 6.79 million tonnes at 2.1g/t gold for 459,600 ounces, and 64 per cent is in the indicated category.

Drilling here started at the surface and went to a depth of 300 metres.

Toweranna Underground

Toweranna’s Underground resource is made up of 0.56 million tonnes at 3.6g/t gold for 64,500 ounces, and this is all inferred.

De Grey is now continuing with drilling at its Hemi Discovery and plans to have two diamond rigs and one reverse circulation rig operating in the near future.

The newest results for Hemi are scheduled for early next week.

De Grey is up a slight 4.35 per cent on the market in mid-morning trade and shares are selling for 24 cents each at 11:31 am AEDT.

DEG by the numbers
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