De Grey announces 40 per cent increase in Turner River gold

THE BOURSE WHISPERER: The news has been good for De Grey Mining with its farm-in partner on the Turner River gold project, Lansdowne Resources providing maiden estimates of gold resources for the Amanda and Mt Berghaus deposits.

Using a cut-off grade of 0.5 grams per tonne gold the estimated resources are:

Amanda: 687,000 tonnes at 1.6 grams per tonne gold for 35,000 ounces of gold (inferred); and

Mt Berghaus: 920,000 tonnes at 1.4g/t gold for 43,000oz gold (inferred).

The estimates follow a diamond core drilling program at Mt Berghaus undertaken by Lansdowne in late 2011 along with a reinterpretation of geological controls on mineralisation at Amanda.

De Grey said applying previous estimates for the Wingina Well deposit, gold resources at the Turner River project, applying a 0.5g/t gold cut-off grade, now total:

6.72 million tonnes at1.41g/t gold for 305,000oz gold (measured + indicated + inferred).

The Amanda and Mt Berghaus estimates have added approximately 40 per cent to total gold ounces in resources at Turner River.

The news continued to flow with Lansdowne also informing De Grey of initial estimates of resources contained in the Discovery and Orchard Tank Volcanogenic Massive Sulphide (VMS)-style base metals deposits on the Turner River base metals project.

 

Estimates of inferred resources at 1 per cent zinc cut-off grade. Source: Company announcement

 

“These estimates begin to quantify the potential of the Turner River VMS belt,” De Grey Mining managing director Gary Brabham said in the company’s announcement to the Australian Securities Exchange.

“The consistently high precious metals credits in particular have a significant impact on the value of these deposits and we have every reason to believe that there is potential for further discoveries.”

Turner River project is located approximately 60 kilometres south of Port Hedland, in the Pilbara region of Western Australia.