De Grey Mining Confirms Large Scale Gold System at Hemi

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) has continued to produce positive gold assay results from RC and aircore drilling programs underway at the recently discovered Hemi prospect within the company’s Pilbara gold project in Western Australia.

De Grey Mining’s recent RC and aircore drilling efforts have defined sulphide alteration along strike, over increased widths and down dip on generally wide-spaced sections between 80 to 160 metres apart.

The latest results have emerged from initial RC drilling at the Brolga Zone (Section B) and the newly named Aquila Zone (Section A and extensions), together with additional aircore results.

RC drilling results from the Brolga Zone have confirmed strong gold mineralisation at depth including:

93 metres at 3.3 grams per tonne gold from 39m, including 21m at 4.7g/t gold;

De Grey said this result confirmed broad gold zone at depth that correlates with previous shallow aircore gold results achieved directly above.

51m at 2.2g/t gold from 98m, including 8m at 4.1g/t gold.

De Grey said the drilling had expanded the sulphide zone expanded to over 200m wide demonstrating potential for over 320m of strike.

Drilling at the Aquila Zone has defined a northeast trend over 750m strike and up to 50m wide with results including:

11m at 3g/t gold from 193m finishing in high-grade mineralisation of 4m+ at 6.5g/t gold;

38m at 3.4g/t gold from 55m, including 9m at 7.4g/t gold; 50m to the north east

42m+ at 2.7g/t gold from 96m, including 4m at 4.2g/t gold; 480m along strike to NE and also ending in mineralisation.

Mineralisation has been confirmed to 180m below surface and remains open

Further assays remain pending on both zones and diamond drilling has commenced.

“Early drilling at Hemi has produced some of the best discovery intersections that I have seen,” De Grey Mining exploration manager Phil Tornatora said in the company’s announcement to the Australian Securities exchange.

“Drilling to date, shows exceptionally wide, continuous and good grade gold mineralisation.

“Geological indications suggest that Hemi may be more of an intrusion related style of gold system rather than the more typical orogenic shear hosted style deposits of the Pilbara and other WA goldfields.

“We have three rigs on site advancing this exciting new discovery.”

The RC and aircore drilling De Grey has undertaken to date has defined two separate parallel gold zones – Aquila and Brolga, demonstrating strong gold mineralisation associated with extensive sulphide rich alteration.

It has also increased sulphide alteration to over 200m wide at the Brolga Zone while identifying a strike length greater than 750m and up to 50m true width along the Aquila Zone.

The company believes potential exists for further, multiple mineralised zones to be discovered.