De Grey Mining Drilling for Toweranna Resource Potential

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) has been encouraged by recent drilling results at the Toweranna gold deposit to declare it an initial resource exploration target.

De Grey Mining has commenced a Resource extension RC drilling program at Toweranna, which forms part of the company’s 1.4 million ounce Pilbara gold project (PGP), located near Port Hedland in the Pilbara region of Western Australia.

The company has set a corporate goal of increasing overall project resources at PGP to two million ounces by the end of the 2019.

Toweranna is considered one of four highest priority targets, along with Withnell Underground, Mallina and Mt Berghaus, for substantial resource extensions De Grey considers will likely impact the 2 million tonnes per annum PFS it currently has underway.

The Toweranna deposit currently hosts a shallow resource of 2 million tonnes at 2.2 grams per tonne gold for 143,900 ounces (JORC 2012) to approximately 100-120m depth.

Recent assessments by De Grey have determined the Toweranna deposit to be under drilled with potential to extend both the shallow resources to the east within the granite body and to increase resources at depth.

De Grey said further resource extension drilling is warranted to enable the final proposed open pit limits to be accurately defined.

Recent RC drilling intersected mineralisation in both Eastern and Western Zones, with results including:

Eastern Zone

5.8 metres at 5.79 grams per tonne gold from 140.2m, including 1.6m at 16.04g/t gold from 140.2m; and

7m at 4.02g/t gold from 8m, including 1m at 22g/t gold from 8m.

Western Zone

10.4m at 4.93g/t gold from 8m, including 3.25m at 12.51g/t gold from 11m; and

4.8m at 9.94g/t gold from 48.2m.

“Toweranna is growing in stature with every drill hole and the shallow resource potential to 200-250 metres depth provides the opportunity to underpin a substantial step-change in the future open pit dimensions and economics,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“This new style of mineralisation in the region demands attention with high priority resource extension drilling underway.

“On the regional exploration front, we are assessing two early stage targets for similar style granite hosted gold, one to the east of Toweranna and another southwest of Mt Berghaus.”