De Grey Mining Extends Mineralisation at Hemi Gold Discovery

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported encouraging signs from drilling underway at the recent Hemi discovery at the company’s Mallina gold project in Western Australia.

De Grey Mining has observed sulphide rich alteration over large widths and depths from initial RC holes drilled on Section B at the Hemi prospect.

A further RC drill hole, completed on Section A, intersected intense sulphide mineralisation at depth beneath the 30 metres wide high-grade gold zone.

On Section B, two RC holes (HERC001 and HERC002) and a third RC precollar (HEDD001) have tested below and to the south of previously announced shallow aircore drilling results of 24 metres at 4.2 grams per tonne gold, 15m at 2.5g/t gold and 21m at 2.5g/t gold.

The company has now observed extensive sulphide mineralisation immediately below the known gold mineralisation and in new parallel sulphide zones to the south on the section, which it considers to increase the potential for mineralisation to over 160m wide to 120m below surface with sulphide zones and potential remaining open in all directions.

On Section A, a maiden RC hole drilled targeted a 50m vertical depth extension to previously reported shallow high-grade gold mineralisation of 36m at 4g/t gold, 49m at 3.7g/t gold, 44m at 5.1g/t gold, 46m at 6.6g/t gold and 24m at 7.5g/t gold.

This recent hole intersected fresh and intense sulphide mineralisation from 192m (downhole) to 204m where the drilling rods became bogged and drilling had to cease.

De Grey is now planning a diamond core extension to complete this hole.

“The significant sulphide zones beneath the high-grade gold zones on Sections A and B are very encouraging,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“The large sulphide zones on Section B have the potential to significantly increase Hemi’s scale.

“The genetic link between Sections A and B as intrusion hosted is exciting and increases the potential at Hemi.

“This is supported by the aircore drilling results to date that highlight every hole above the interpreted intrusions are anomalous in gold.

“The aircore and RC programs are continuing, and a diamond rig is expected on site later this week.”