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De Grey Mining (ASX:DEG) - Executive Chairman, Simon Lill
Executive Chairman, Simon Lill
Source: Finance News Network
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  • New drilling results at gold explorer De Grey Mining’s (DEG) Hemi prospect in the Pilbara are showing further strong returns
  • The newest assays substantially extend the breadth and depth of the find
  • There’s good evidence the mineralised zone extends deeper and further south and west of the currently defined area
  • Drilling continues at both the Brolga and Aquila prospects, and more results are pending, even amid staff distancing protocols at the sites
  • De Grey is up 29.3 per cent so far today — well above market trends — with shares trading at 26.5 cents apiece

New drilling results at gold explorer De Grey Mining’s (DEG) Hemi prospect in the Pilbara are showing further strong returns, with the known mineralised zone being extended and more results yet to come.

Brolga Grows

Since the first results were received in December 2019, further encouraging high grade results have subsequently been reported in February 2020. The newest assays substantially extend the breadth and depth of the find – it’s now estimated the deposit is more than 340 metres long, over 300 metres wide and beyond 200 metres deep.

There’s good evidence the mineralised zone extends further south and west of the currently defined area, and many of the drill holes haven’t yet exhausted the resource at depth.

Technical Director Andy Beckwith says Brolga is still growing substantially.

“We continue to increase the overall footprint of the gold-sulphide mineralisation, particularly to the west and down dip where substantial thicknesses of mineralisation remain open.”

“The recent four RC [reverse circulation] holes to the south and west have logged some of the strongest sulphide mineralisation noted to date. Drilling is planned to continue with one RC and two diamond rigs testing the limits of mineralisation at Hemi.”

The RC drilling is being used mainly to define sulphide mineralisation, which has so far correlated well with the known gold mineralisation. Further RC, aircore and diamond drilling is being used to define resource estimates.

Some mineralised zones are also being defined at shallow diagonals, rather than steep vertical alignments. This means there’s also longer-term promise for near-surface and open-pit mining.

Drilling continues at the site, and more results are pending. De Grey believes the program will return more high-grade results, further extending the richness of the resource at the Brolga zone.

Aquila Shows Further Promise

Aircore drilling also continues at the Aquila prospect, just north of Brolga. The program has been recently expanding the explored zone and refining results for areas of promise.

This is mainly occurring to the north of Aquila, where the previous air core results had highlighted anomalous gold in all holes above what are thought to be more mineralised zones. Results remain pending for this drilling.

In the meantime, further encouraging priority air core drilling results have also been received, which have extended the Aquila prospect.

COVID-19

De Grey reports the company, with the support of its various contractors, plans to continue the drilling program with 1 RC and 2 diamond rigs operating. The plan has been undertaken to maximise the protection of all personnel and reduce potential threats associated with COVID-19.

Strategies to mitigate this risk include changed rosters to minimise travel and camp management to restrict external third party interaction. The plan is constantly being reviewed and may change at any time.

De Grey is up 29.3 per cent so far today — well above market trends — with shares trading at 26.5 cents apiece as at 12:10 pm AEDT.

DEG by the numbers
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