De Grey Mining Expands Resource Potential at Mallina Deposit

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) has received results from drilling on the Mallina deposit, part of the company’s 1.4 million-ounce Pilbara gold project, located near Port Hedland in Western Australia.

De Grey Mining completed a drill program comprising four diamond tails and 15 RC holes that produced encouraging results showing along strike extensions outside of the existing resource model.

New drill results include:

MLRC253D
4.93 metres at 1.23 grams per tonne gold from 106.32m, including 1.19m at 3.73g/t gold from 109.17m;

MLRC255
5m at 2.04g/t gold from 81m;

MLRC257
6m at 1.29g/t gold from 70m, including 1m at 5.66g/t gold from 70m;

11m at 1.05g/t gold from 101m, including 2m at 2.66g/t gold from 106m; and

14m at 1.05g/t gold from 130m.

MLRC258
4m at 1.52g/t gold from 44m; and

7m at 1.33g/t gold from 89m, including 2m at 2.85g/t gold from 92m.

MLRC260
5m at 1.87g/t gold from 151m.

MLRC261
8m at 1.23g/t gold from 62m, including 2m at 3.08g/t gold from 65m; and

14m at 1.59g/t gold from 75m, including 4m at 3.17g/t gold from 77m.

MLRC269
5m at 1.51g/t gold from 66m.

“The RC drilling targeted a number of selected lodes with step out extensions both along strike and down dip,” De Grey Mining said in its ASX announcement.

“The Central Zone has been extended 50 metres to the west and remains open.

“The step out diamond drill holes targeted both deeper down dip extensions of the previously intersected wide alteration and gold zones on section 609315E and known mineralised lodes for metallurgy test work.”

De Grey has commenced a Sub-Audio Magnetic (SAM) survey that has been designed to provide greater ability to target along strike extensions by providing more confidence in the lateral extents of the controlling mineralised structures and allow for larger drill programs to be designed going forward.

The company expects these larger drill programs will enable larger and more rapid resource extensions to be defined.

Further resource extension drill programs are to be planned based on the results of the SAM survey and the pending diamond core.

 

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