Join our daily newsletter At The Bell to receive exclusive market insights
- De Grey Mining (DEG) has spiked as much as 50 per cent after receiving outstanding initial results from its Hemi Prospect
- Substantial thick and high-grade gold mineralisation has been intersected in two sections of the prospect
- Gold grading up to 7.5 grammes per tonne was intersected over the Hemi area
- Step out aircore drilling is continuing with reverse circulation and diamond drilling rigs also mobilised
- After emerging from a trading halt, De Grey’s share price is currently up 47.8 per cent with shares trading for 6.8 cents apiece
De Grey Mining (DEG) has spiked as much as 50 per cent today after receiving outstanding initial results from its Hemi Prospect.
The aircore drilling was aimed at better defining the recent high-grade gold mineralisation, 43 metres at 3.7g/t gold and 25 metres at 2.7g/t gold, on the 640 metre spaced sections.
The program remains ongoing with a total of 57 new holes completed for a total of 4709 metres to date.
Further results remain pending for 50 holes including on the original Section A and step out lines along strike.
The 2020 aircore drilling program began in mid-January with initial drilling focused on deeper holes to determine the dip of the high-grade gold mineralisation.
Following this, additional infill and step out lines began, including infilling the two existing lines at 80 metre spaced collars.
Section A
On Section A, infill aircore drilling has been completed with initial results received for priority holes BWAC309, 310 and 315.
Additional one metre resampling has been completed on the original hole, BWAC245, but results for holes BWAC319-323 are yet to be received.
The results to date define a substantial steeply south-dipping zone of high-grade gold mineralisation with the deepest hole, BWAC315, intersecting the highest grade to date of +24 metres at 7.5g/t gold.
Other results include 36 metres at 4g/t gold from 39 metres and 49 metres at 3.7g/t gold from 65 metres.
Geological logging indicated the gold mineralisation is hosted in a sequence of highly leached fine-grained sediments with copious disseminated sulphides and minor quartz veining.
Drilling has defined the gold zone to approximately 130 metres below the surface, providing over 100 metres of vertical extent in bedrock.
Mineralisation remains open along strike and is expected to continue at depth.
Drill hole BWAC315 showed strong mineralisation evident at 130 metres below the surface.
The hole is now at the limit of the penetration aircore rig and larger capacity reverse circulation (RC) drilling is required to test deeper.
Assay results for BWAC320 and 321 remain pending with geological logging indicating the similar style and intensity of alteration in both holes.
Further encouragement is seen elsewhere with additional alteration zones logged in the wider-spaced aircore drilling.
Section B
On Section B infill aircore drilling has been completed with initial results received for priority holes BWAC311-314.
Significant results include 24 metres at 4.2g/t gold from 36 metres and 15 metres at 2.5g/t gold from 33 metres.
Results to date define a broad zone of gold mineralisation over at least 60 metres with intercept grades ranging from 2.2g/t to 4.3g/t.
Drilling defined a zone of oxide mineralisation approximately 20 metres thick beneath 30 metres of transported cover.
The drilling could not penetrate any deeper as the intrusive is harder in fresh rock, hence the gold zone remains untested and entirely open at depth and potentially to the southwest.
Geological logging indicates the broad zone of gold mineralisation is hosted in an altered intrusion with ample sulphide development.
The high grade, broad and robust nature of the gold mineralisation provides scope to define a substantial resource with additional drilling.
At this stage, De Grey believes that the two zones are structurally related and Sections A and B are linked.
“We currently interpret that the two mineralised zones are structurally related, suggesting we could be drilling a major new gold discovery,” Technical Director Andy Beckeith commented.
“Aircore drilling will continue to define the lateral extent, orientation and potential scale of the mineralised system. Follow-up RC and diamond drilling will commence shortly with a view to establishing an initial inferred resource,” he added.
After emerging from a trading halt, De Grey’s share price is currently up 47.8 per cent with shares trading for 6.8 cents apiece at 12:01 pm AEDT.
