De Grey Mining Hits Encouraging Gold at Toweranna

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) received new RC drilling results from the Toweranna gold deposit within the company’s Pilbara gold project in Western Australia.

De Grey Mining said the results comprise the first 12 holes of a planned Resource extension drilling program, 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.

The company expects drilling to recommence within two weeks, having been delayed due to recent heavy rains associated with tropical Cyclone Veronica.

The latest results include lateral extensions to the existing shallow resource and numerous new lodes at depth, between 100 metres and 200m below surface.

Essentially all new drilling results occur outside of the modelled lodes within the existing resource.

Best bulk intersection in the latest results was encountered in hole TRC138, of:

136 metres at 2 grams per tonne gold from 94m, including 26m at 3.07g/t and 29m at 4.38g/t.

Other high-grade gold intersections below 100m included:

29m at 4.38g/t gold from 201m, including 1m at 41.9g/t gold and 2m at 29.9g/t gold;

6m at 6.45g/t gold from 135m, including 1m at 20.3g/t gold;

6m at 3.5g/t gold from 204m; and

3m at 7.02g/t gold from 150m and
5m at 5.04g/t gold from 218m, including 1m at 22.9g/t gold.

“We are very pleased with these new drill results as they confirm strong gold mineralisation occurs to at least 200 metres below surface and material resource extensions are likely with further drilling,” Ge Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“The potential to extend resources from 200 to 400 metres depth will be our next focus.

“The bonanza high-grade nature of some of the individual veins is also particularly encouraging as it suggests selective or bulk underground mining methods may be possible.

“Importantly, the new drilling shows Toweranna has multiple stacked lodes across the entire intrusion, strong mineralisation extending at depth and remains open.

“This is a new style of mineralisation for the Pilbara and similar style deposits elsewhere around the world validates the potential for large scale and multi-million-ounce resources.”