De Grey Mining Encounters Further Toweranna High-Grade Intercepts

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) received results for 13 holes of a 42-hole RC drilling program undertaken at the company’s Toweranna gold deposit in Western Australia.

De Grey Mining explained the drilling was carried out on a 40 metre by 40 metre basis to allow for an open pit resource estimation to 200m depth, targeting lateral and depth extensions to the existing shallow 2018 Toweranna Mineral Resource of 2.01 million tonnes at 2.2 grams per tonne gold for 143,900 ounces.

Latest results include:

15 metres at 5.11 grams per tonne gold from 205m, including 5m at 12.52g/t gold from 213m;

8m at 16.37g/t gold from 228m, including 2m at 61.7g/t gold from 231m;

4m at 15.34g/t gold from 36m;

21m at 2.04g/t gold from 194m; and

11m at 5.21g/t gold from 25m, including 2m at 18.55g/t gold from 33m.

De Grey Mining said the drilling results to date show numerous additional stacked lodes have been defined by the new RC holes as well as supporting a likely substantial increase to the current open pit resource to 200m depth.

The company is now evaluating potential to extend gold lodes beyond 200m with selected scout diamond holes testing for mineralisation between 200 to 600m depth.

“The new drilling results clearly suggest a substantial resource increase can be expected,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“The stacked gold mineralisation has now been confirmed to extend throughout the entire 250 metre diameter granite body and to at least 200 metres depth and remains open at depth.

“The high-grade nature of the gold bearing quartz veins is especially encouraging.

“We expect the large volume of new assays that have been received will support a significant increase in the upper high-grade gold cut in the resource estimate, which may result in an increase in overall grade in addition to increased ounces.

“Importantly, many of the gold lodes remain open below the latest RC drilling and historical diamond drilling shows lodes occur to at least 425 metres depth.”