THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported an increase in the Mineral Resources Estimate for the company’s Mallina gold project (MGP) near Port Hedland in Western Australia.
De Grey has taken the MRE from 2.2 million ounces to 9 million ounces, thanks mainly to the company’s 6.8 million ounces Hemi discovery Maiden Mineral Resource.
The total JORC Code 2012-complaint Mineral Resource Estimate for Hemi currently stands at 192 million tonnes at 1.1 grams per tonne gold for 6.8 million ounces.
This breaks down to an Indicated Resources of 66 million tonnes at 1.3g/t gold for 2.8 million ounces and Inferred Resources of 127 million tonnes at 1g/t gold for 4 million ounces.
“Hemi is an exceptional new Western Australian gold discovery which is redefining the gold potential of the Pilbara and has changed the future for De Grey and our shareholders,” De Grey Mining technical director Andy Beckwith said in the company’s ASX announcement.
“De Grey’s exploration team has taken Hemi from discovery to a Tier 1 scale 6.8 million ounces gold deposit in a short timeframe.
“RC and diamond drilling commenced only 15 months ago and further extensions are expected at each deposit as drilling continues.
“Twelve drill rigs are currently focused on expanding Hemi as well as testing numerous targets within our large 100 per cent-owned, 150 kilometres long land package.
“I have no doubt we will be drilling and finding additional resources for many years to come.”
The inclusion of the Indiacte 2.8 million ounces of Hemi has taken the Measured and Indicated Mineral Resources across the MGP to 3.8 million ounces at 1.4g/t gold.
De Grey believes these Mineral Resources provide a strong platform for a scoping study targeted for completion in the September quarter 2021.
The company considers there to be potential for the maiden Hemi and Global MGP Mineral Resources to grow along strike and at depth.
“The company has delivered on its commitment to deliver a maiden Hemi Mineral Resource to shareholders by mid-2021,” De Grey Mining managing director Glenn Jardine added.
“The 6.8 million ounces Hemi Mineral Resource is substantial and exceeds our initial expectations.
“We are committed to increasing the resource base with ongoing drilling programs.
“Project studies, including metallurgy, geotechnical, mining, environmental, infrastructure and hydrogeology are continuing in parallel with the exploration drilling.
“These studies aim to provide information to define the development and production opportunities this scale of resource brings.
“The company expects to be able to provide production potential for Hemi and the overall Mallina gold project to shareholders in the September quarter 2021 through the completion of a scoping study.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE