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De Grey Mining (ASX:DEG) - Chairman, Simon Lill - The Market Herald
  • De Grey Mining (DEG) has spent the June quarter growing its Hemi discovery at the Mallina Gold Project in Western Australia
  • Throughout the quarter, more than 43,000 meters of aircore, reverse circulation, and diamond drilling was completed at the Aquila, Brolga, and Crow zones
  • In May, Glenn Jardine began his role as Managing Director while Simon Lill moved from Executive Chairman to Chairman
  • During the quarter, De Grey burnt $747,000 with the majority of that going to administration, corporate, and staff costs
  • As of June 30, the company had $28.2 million in cash
  • De Grey has ended the day a slight 0.69 per cent in the green with shares trading for 74 cents each

De Grey Mining (DEG) has spent the June quarter growing its Hemi discovery at the Mallina Gold Project in Western Australia.

Throughout the quarter more than 16,000 metres of aircore (AC) drilling was completed, more than 18,000 metres of reverse circulation (RC) drilling was completed, and more than 9000 metres of diamond drilling was completed.

Aquila zone

During the quarter, De Grey undertook RC, AC, and diamond drilling at the Aquila zone both at depth and along strike.

Work completed prior to the end of the quarter has successfully extended the strike length to 1200 metres and a depth of 150 metres while drilling completed after the quarter extended the strike to 1600 metres.

Significant results include 53 metres at 5.9g/t gold from 117 metres including 28 metres at 10.2g/t gold from 117 metres, and 45 metres at 8.1g/t gold from 111 metres.

Brolga zone

The Brolga zone is a large mineralised intrusion which spans a length of more than 640 metres and a width of up to 300 metres.

Mineralisation remains open down dip to the south, east and west, with a new extension also identified to the south.

Significant results from drilling this quarter include two metres at 10g/t gold from 161 metres, 6.13 metres at 4.8g/t gold from 220 metres, and 55.3 metres at 1.9g/t gold from 184.7 metres.

Brolga South

Additional drilling was completed to the immediate south of Brolga and this identified a substantial new zone of intrusion, similar to the main Brolga zone.

This new zone covers an area of 1000 metres by 200 metres and remains open to the south.

Encouraging results from this area include four metres at 5g/t gold from 60 metres, 16 metres at 2.4g/t gold from 40 metres, and eight metres at 2.2g/t gold from 52 metres.

Crow zone

Six RC holes were drilled at the Crow zone to undertake an initial test of the bedrock.

Mineralisation is similar to that seen at both the Aquila and Brolga zones.

During the quarter, significant results such as 63 metres at 0.9g/t gold from 26 metres including four metres at 7.2g/t gold from 56 metres and two metres at 3.7g/t gold from 26 metres were returned.

Following the release of these results, a 5000 metre step-out RC drilling program began to test the Crow zone along strike.

This program finished in July and results are expected in the upcoming quarter.

Scooby & Antwerp targets

During the quarter, De Grey began AC drilling at the Scooby and Antwerp targets, which are two of the four major targets outside of Hemi.

Scooby

Encouraging results from Scooby include 14 metres at 3.5g/t gold from 37 metres, and eight metres at 1.3g/t gold from 40 metres.

Antwerp

Better results from Antwerp include four metres at 21.7g/t gold from 32 metres, and six metres at 10.7g/t gold from four metres.

Metallurgical testwork

Additionally, initial metallurgical testwork was undertaken throughout the quarter with excellent gold recoveries achieved from Brolga.

Twelve samples of oxide mineralisation were taken from RC holes with each sample subject to carbon in leach (CIL) testwork.

Gold grades had an average of 1.5g/t, while recovery ranged between 85 per and and 98 per cent to average at 93 per cent.

A sample was then taken from a diamond hole and was subject to CIL testwork.

This sample had an overall recovery of 96.3 per cent and an assayed head grade of 2.62g/t gold.

Managing Director appointment

In May, Glenn Jardine began his role as Managing Director while Simon Lill moved from Executive Chairman to Chairman.

Glenn is a mining engineer with experience in project management and general management.

Cash

During the June quarter, De Grey burnt $747,000 with the majority of that going to administration, corporate, and staff costs.

As of June 30, the company had $28.2 million in cash, and this does not include the $5.4 million investment by DGO Gold and Non-Executive Chairman Peter Hood.

De Grey has ended the day a slight 0.69 per cent in the green with shares trading for 74 cents each in a $865.9 million market cap.


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